Tech And Financial Stocks Have Worst Day In Months, Leading The Market Lower

By Ryan Vlastelica Markets MarketWatch Pulse

Shares of technology and financial companies fell on Thursday, with both dropping in their biggest one-day percentage decline in weeks and leading the overall market lower. The Technology Select Sector SPDR ETF fell 0.9%, as did the Financial Select Sector SPDR ETF . Thursday marked the biggest one-day decline for bank stocks since May, and the biggest percentage drop for tech shares since late June. Both sectors, which are among the largest in the market by weighting, have also fueled the rally of late. Tech stocks are up more than 18% thus far this year, the best-performing sector over that period. Gains in the sector, particularly among its largest components, have fueled the overall market's advance, leading to questions over whether the group is overvalued. Financial shares have risen nearly 30% over the past 12 months, the best performer over the past year. Among the most active stocks on the day, Facebook Inc. fell 1.3% while Apple Inc. was off 1.1%. Chipmakers were also broadly lower; Nvidia Corp. fell 3% while Applied Materials was off 2.5%. Among banks, Morgan Stanley dropped 1.9% while Goldman Sachs Group Inc. slid 1.6%. Outside of tech and financials, all of the primary S&P 500 sectors were lower on Thursday. The benchmark index was down 0.7% in its biggest one-day drop since July 6.

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