Technology companies dragged indexes lower on
The S&P 500 fell 0.7%, erasing its gains from last week. Big technology companies like
Investors continue to focus on corporate earnings and on gauging the economic recovery's progress. Earnings and most economic indicators have been signaling a steady improvement, but investors remain concerned about the lingering threat from COVID-19, inflation and other factors that could crimp progress.
A key concern has been the recovery in the employment market. Investors will get another update with this week’s jobs report.
“The entire market is down, but the tech stuff is down way more,” said
The S&P 500 fell 28 points to 4,164.66. The benchmark index hit an all-time high last Thursday. The technology-heavy Nasdaq Composite dropped 261.61 points, or 1.9%, to 13,663.50. The Russell 2000 index of small-company stocks lost 29.17 points, or 1.3%, to 2,248.29. The Dow Jones Industrial Average fared better than the other indexes. It recovered from an early stumble, adding 19.80 points, or 0.1%, to 34,133.03.
Before this week, stocks had been grinding higher on expectations of an economic recovery and strong company profits this year as large-scale coronavirus vaccination programs help people return to jobs and normal activities after more than a year of restrictions. Massive support from the
More than half of the companies in the S&P 500 have reported their results so far this earnings season, which show profit growth of 54%, according to FactSet.
Still, a key concern is whether the economy is strengthening so quickly that it will force the
Remarks by Treasury Secretary
“That is why the sell-off hit tech stocks, especially,” said
Technology stocks have had a strong runup over the past year. With the market near its recent record highs, the prospect of higher interest rates, which can slow the economy by making the cost of capital more expensive, makes tech stocks look particularly vulnerable.
Bond yields fell. The yield on the 10-year
Investors will get a closely watched jobs report on Friday. Economists expect that