21/05/2024 3:12 AM


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Tech takes wind out of market rally

View of New York Stock Exchange, Wall Street on March 23, 2020 in New York City.

Angela Weiss | AFP | Getty Images

Dow Jones Industrial Average falls 32 points

The Dow closed 32.23 points higher, or 0.13{3c4481f38fc19dde56b7b1f4329b509c88239ba5565146922180ec5012de023f}, to 24,101.55. The S&P 500 climbed 0.52{3c4481f38fc19dde56b7b1f4329b509c88239ba5565146922180ec5012de023f} to 2,863.39. The Nasdaq Composite dipped 1.40{3c4481f38fc19dde56b7b1f4329b509c88239ba5565146922180ec5012de023f} to 8,607.73. The Dow snapped a four-day winning streak as a decline in tech shares pressured the broader market, offsetting the enthusiasm about the prospects of reopening the economy.

Tech takes wind out of market rally

A partial reopening of the U.S. economy — in Alaska, Georgia, South Carolina, Tennessee, Texas, and others — has boosted investor sentiment in recent trading sessions, with certain U.S. businesses poised to benefit from the first wave of consumers emerging from the coronavirus driven quarantine. But Dr. Anthony Fauci, director of the National Institute of Allergy and Infectious Diseases, warned we’re not out of the woods yet. On Tuesday, he said the U.S. could be in for a “bad fall” season if an effective treatment for the coronavirus is not found by then. He noted the virus is “not going to disappear from the planet.” Meanwhile, sharp losses from some of the major tech stocks — including Facebook, Amazon, Apple, Alphabet and Netflix — dented market sentiment. 

‘Reopening’ trade outperforms, tech lags

Stocks that benefit from the economy reopening outperformed on Tuesday. Simon Property Group and Kohl’s rose 10.74{3c4481f38fc19dde56b7b1f4329b509c88239ba5565146922180ec5012de023f} and 6.67{3c4481f38fc19dde56b7b1f4329b509c88239ba5565146922180ec5012de023f}, respectively. Facebook dropped 2.45{3c4481f38fc19dde56b7b1f4329b509c88239ba5565146922180ec5012de023f} while Amazon slid 2.61{3c4481f38fc19dde56b7b1f4329b509c88239ba5565146922180ec5012de023f}. Alphabet fell 3.01{3c4481f38fc19dde56b7b1f4329b509c88239ba5565146922180ec5012de023f}. 

What happens next?

The Federal Reserve is set to release its latest monetary policy announcement on Wednesday.

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