US Technology Sector Falls Amid Big Tech Antitrust Investigation

Stocks actually spent most of the session under pressure, but a late session rally helped the S&P 500 and Dow erase those early losses. The late surge was fueled by a recovery in industrial, energy and health care stocks. Higher U.S. Treasury yields helped bank stocks post solid gains.
James Hyerczyk
U.S. Stock Indexes

The major U.S. stock indexes finished mixed on Tuesday with technology shares weighing the most on the market. The pressure in the technology sector was attributed to the news that nearly all the nation’s state attorneys general are probing Big Tech companies.

Individually, shares of Ford were pressured by a downgrade to its credit rating. Higher yields helped drive Bank of America shares up 2.5%. Goldman Sachs gained 1.7% and State Street rose 9%.

In the cash market, the benchmark S&P 500 Index settled at 2979.39, up 0.96 or +0.03%. The blue chip Dow Jones Industrial Average finished at 26909.43, up 73.92 or +0.29% and the technology-based NASDAQ Composite closed at 8084.16, down 3.28 or -0.04%.

Late Session Surge

Stocks actually spent most of the session under pressure, but a late session rally helped the S&P 500 and Dow erase those early losses. The late surge was fueled by a recovery in industrial, energy and health care stocks. Higher U.S. Treasury yields helped bank stocks post solid gains.

Rotation from Growth Stocks to Value Stocks

For a second session, there was evidence of investor rotation from growth stocks to value stocks.

“It seems like a complete reversal of what’s kind of been the theme over the last few months, where it’s been more about higher quality, higher market cap, higher growth, more stable growth and lower volatility,” said Sameer Samana, senior global market strategist at Wells Fargo Investment Institute. “Things that had been doing well just completely got sold and the things that had been lagging completely got bought.”

Small Caps Attractive

For a second session, investors also flocked to small-cap companies on the premise that they may be better shielded from the fallout of the expensive trade war between the United States and China than large multinational corporations.

Small-cap winners included ABM Industries, which jumped 3.1% and Spectrum Pharmaceuticals, which surged 16.9%.

The Russell 2000 Index, which is composed of small-cap stocks, gained 1.2%.

Technology Shares Feeling Heat

U.S. technology shares continued to diverge from the S&P 500 Index and Dow for a third session on Tuesday led by steep losses in the FAANG group.

Tech giants Facebook, Amazon, Netflix and Google’s parent Alphabet all declined amid the antitrust investigation into Google. Apple shares bucked the trend on Tuesday, rising 1.2% after announcing a new slate of iPhones and other products, including a $5 a month streaming video service, which would be cheaper than rival offers.

Don't miss a thing!

Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Latest Articles

See All

Expand Your Knowledge

See All

Top Promotions

Top Brokers

IMPORTANT DISCLAIMERS
The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. The content of the website is not personally directed to you, and we does not take into account your financial situation or needs.The information contained in this website is not necessarily provided in real-time nor is it necessarily accurate. Prices provided herein may be provided by market makers and not by exchanges.Any trading or other financial decision you make shall be at your full responsibility, and you must not rely on any information provided through the website. FX Empire does not provide any warranty regarding any of the information contained in the website, and shall bear no responsibility for any trading losses you might incur as a result of using any information contained in the website.The website may include advertisements and other promotional contents, and FX Empire may receive compensation from third parties in connection with the content. FX Empire does not endorse any third party or recommends using any third party's services, and does not assume responsibility for your use of any such third party's website or services.FX Empire and its employees, officers, subsidiaries and associates, are not liable nor shall they be held liable for any loss or damage resulting from your use of the website or reliance on the information provided on this website.
RISK DISCLAIMER
This website includes information about cryptocurrencies, contracts for difference (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money.FX Empire encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved.
FOLLOW US