Tech Shares Fall 1%, Weighing On Broader Market; Apple And Alphabet Both Tumble
The largest exchange-traded fund to track the technology sector fell on Thursday, erasing an earlier gain and leading the broader market lower. The Technology Select Sector SPDR ETF fell 1.1% in afternoon trading, dropping to $57.10. Earlier, it had risen as high as $58.20, largely on the back of positive results out of Facebook Inc. . While the social media giant was still positive on the day, up 2.3% to $169, it was well off its highs of the session, having previously gained as high as $175.49, a level that represented a record. Among the most notable names, Apple Inc. sank 2.9% while Google parent Alphabet was off 2.3%. Microsoft Corp. shed 1.4% on the day. Separately, Netflix Inc. , a consumer discretionary stock that often moves on trends in the internet sector, fell 4.4%. Amazon.com , another internet name classified in the consumer discretionary sector, fell 0.5%. The online retailer is scheduled to report its quarterly results after the market closes. While the tech sector is one of the strongest-performing of the year, investors have become increasingly concerned about the group's valuations, leading to multiple sessions this year when it abruptly turned lower. The weakness in tech spread to the broader market, with the S&P 500 down 0.6% while the Nasdaq , which is heavily weighted towards technology stocks, lost 1.5%.
Copyright © 2017 MarketWatch, Inc.