MARKET SNAPSHOT: Nasdaq Sinks As Apple Leads Abrupt Tech Selloff

By Barbara Kollmeyer, MarketWatch , Ryan Vlastelica Features Dow Jones Newswires

Gains in energy, financials limit the broader market's decline

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U.S. stocks came off their highs of the session on Friday, with the Nasdaq reversing an early gain that took it to a record as the technology sector abruptly turned lower in afternoon trading, something analysts credited to profit-taking after recent strength.

The Dow Jones Industrial Average rose 87 points, or 0.4%, to 21,270. The S&P 500 added 6 points to 2,440, a rise of 0.2%. The Nasdaq Composite Index fell 35 points to 6,287, a decline of 0.6%.

All three had hit intraday records in morning trading, but the sudden tech retreat pushed the Nasdaq into negative territory for the week. It had previously looked to close with a gain of 0.5% for the week; currently, it is looking at a decline of 0.4%. Both the Dow and the S&P remained in slightly positive territory for the week.

Apple Inc. (AAPL) tumbled 2.6%, weighing on the overall technology sector, which fell 1.2%. Other major tech stocks were also sharply lower. Facebook Inc.(FB) fell 1.4% while Alphabet Inc. (GOOGL), the parent of Google, was down 1.2%.

All three stocks have been among the biggest boosts to the market in 2017, gaining more than 25%.

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"All these stocks have hit new highs recently, so now people are taking a pause and we're seeing the money flow out," said Doug DePietro, managing director for trading at Evercore ISI. "There's nothing in the news that's saying, 'sell the big tech stocks'; this is just simple profit-taking, a rotation to other names."

The Russell 2000 index of small-cap shares rose 1% on Friday, bringing its week-to-date gain to 1.7%.

The tech decline had an outsize drag on the Nasdaq, which is heavily weighted towards the sector. The Dow and S&P remained in positive territory due to the energy and financial industries, both of which advanced on the day. Energy shares gained 2.1% while financials (XLF) were up 1.8%. Goldman Sachs Group Inc.(GS), Morgan Stanley (MS) and Bank of America Corp.(BAC) all climbed more than 2%.

Exxon Mobil added 1.2% while Chevron Corp.(CVX) was up 2%.

See:'Worst possible outcome'--analysts react to U.K. early election results (http://www.marketwatch.com/story/worst-possible-outcome-analysts-react-to-uk-early-election-results-2017-06-08)

Next up, Fed meeting: Traders see a 95.8% probability of a U.S. interest rate increase at the conclusion of the Federal Reserve's two-day policy meeting next week on June 14, CME Group's FedWatch showed (http://www.cmegroup.com/trading/interest-rates/countdown-to-fomc.html/).

The only top-tier economic data scheduled for release Friday is an update on wholesale inventories for April, due at 10 a.m. Eastern Time.

Stocks on the move: Shares of Endo International PLC(ENDP) slumped 14% after the Food and Drug Administration late Thursday said it asked the company to stop selling its opioid pain medication (http://www.marketwatch.com/story/fda-asks-endo-to-stop-selling-opioid-in-first-such-move-2017-06-08), reformulated Opana ER, citing concerns about abuse.

DuPont Fabros Technology Inc.(DFT) soared 10% after the developer and operator of multi-tenant data centers announced a deal to be purchased by (http://www.marketwatch.com/story/dupont-fabross-stock-soars-toward-record-after-digital-realty-buyout-deal-2017-06-09)Digital Realty Trust Inc (http://www.marketwatch.com/story/dupont-fabross-stock-soars-toward-record-after-digital-realty-buyout-deal-2017-06-09).(DLR) Digital Realty was down 3.3%.

Shares of Nvidia Corp.(NVDA) sank 4.1% after a price target upgrade by Citi, to $180, the highest on Wall Street (http://www.marketwatch.com/story/nvidia-shoots-to-record-after-citi-establishes-street-high-target-2017-06-08).

Other markets: The British pound sank to a seven-week low against the dollar, dropping to $1.2765 from $1.2957 in late trading on Thursday. The dollar was firmer across the board (http://www.marketwatch.com/story/dollar-rises-pound-hits-7-week-low-as-uk-heads-for-hung-parliament-2017-06-09), with the U.S. dollar index , which compares the dollar to a half-dozen major rivals, up 0.5%.

Crude oil prices (http://www.marketwatch.com/story/oil-prices-pinned-down-by-strong-dollar-supply-worries-2017-06-09) traded higher, while gold edged lower.

In Asia (http://www.marketwatch.com/story/nikkei-returns-to-20000-as-asian-markets-warily-eye-uk-election-2017-06-08), the Nikkei 225 index gained on yen weakness, returning to the 20,000 level, with other markets mixed.

(END) Dow Jones Newswires

June 09, 2017 13:22 ET (17:22 GMT)