MARKET SNAPSHOT: Nasdaq Tumbles On Tech Selloff While Dow Climbs To Record Close

Apple posts biggest daily drop since 16 months

The Dow closed at a record on Friday even as the Nasdaq skidded nearly 2% as the technology sector abruptly fell in afternoon trade.

The Nasdaq's retreat comes on the heels of an early record and marked the biggest one-day decline for the Nasdaq since May 17, when it tumbled more than 2.5%.

The Dow Jones Industrial Average rose 89.44 points, or 0.4%, to end at 21,271.97, for a weekly gain of 0.3%. The S&P 500 edged down 2.02 points to finish at 2,431.77, falling 0.3% on the week.

The Nasdaq Composite Index sank 113.85 points, or 1.8%, to close at 6,207.92. The sudden tech retreat pushed the Nasdaq into negative territory for the week with the tech-heavy index closing down 1.6%.

Apple Inc. (AAPL) sank 3.9% in its biggest one-day drop since January 2016. The overall technology sector (XLK) fell 2.5%. Other major tech stocks were also sharply lower. Facebook Inc.(FB) skidded 3.3%, Alphabet Inc. (GOOGL), the parent of Google, lost 3.4%, Microsoft Corp.(MSFT) dropped 2.3% and Amazon.com Inc.(AMZN) shed 3.2%.

"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 tech sector's tumble also follows a warning from Goldman Sachs that highfliers such as Facebook, Amazon, Apple, Microsoft and Alphabet--which had significantly contributed to the market's multimonth rally--may be overextended.

"This outperformance, driven by secular growth and the death of the reflation narrative, has created positioning extremes, factor crowding and difficult-to-decipher risk narratives," said Robert Boroujerdi, an analyst at Goldman Sachs, in a note.

The tech selloff also triggered a return in market turbulence with the CBOE Volatility Index spiking more than 5% to 10.70. Wall Street's so-called fear index had earlier sank to 9.37, the lowest since December 1993 (http://www.marketwatch.com/story/wall-streets-fear-index-bounces-off-23-year-low-as-tech-stocks-sink-2017-06-09).

Deeper losses in equities were limited by the energy and financial industries, both of which advanced on the day. Energy shares gained 2.5% while financials were up 1.9%.

J.P. Morgan Chase & Co.(GS) rose 2.4% and Goldman Sachs Group Inc. (GS) climbed more than 1.7%. Exxon Mobil (XOM) added 1.9% while Chevron Corp.(CVX) was up 2.3%.

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 17% 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 9.8% after the developer and operator of multitenant 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 3.4%.

Other markets: The British pound sank to a seven-week low against the dollar, dropping to $1.2739 from $1.2957 in late trading on Thursday after Britain's snap election left Prime Minister Theresa May clinging to power after her Conservative party failed to secure a parliamentary majority.

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)

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, was flat after trading higher.

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

--Barbara Kollmeyer contributed to this report.

(END) Dow Jones Newswires

June 11, 2017 12:43 ET (16:43 GMT)