Wednesday’s early trade: S&P, Nasdaq fall as high-flying tech stocks slide

NEW YORK: Wall Street’s major indexes dropped on Wednesday, weighed down by technology stocks as investors unwound positions in high-flying shares and pivoted to sectors that are likely to benefit from an economic reopening on hopes of swift vaccinations.

Microsoft Corp, Apple Inc and Amazon.com Inc dropped 0.9% and 1.3%, weighing the most on the S&P 500. Financials and energy jumped over 1%, while industrials also edged up. The remaining eight S&P sectors declined. The Russell 1000 value index, which is heavily weighted toward cyclical sectors, rose 0.4%, while its growth index, comprising large tech companies, fell 0.8%.

Data showed US private employers hired fewer workers than expected in February, suggesting the labor market was struggling to regain speed despite the nation’s improving public health picture.

A more comprehensive monthly jobs report is due on Friday. At 10:07 a.m. ET, the Dow Jones Industrial Average fell 26.45 points, or 0.08%, to 31,365.07, the S&P 500 lost 22.69 points, or 0.59%, to 3,847.60 and the Nasdaq Composite lost 152.25 points, or 1.14%, to 13,206.54.

Exxon Mobil Corp, ahead of a closely watched investor meeting, rose 0.4% after the company said it would grow its dividend and cut debt through 2025.—Reuters