Shares of technology companies fell slightly as investors rotated into sectors more associated with "value" and "cyclical" qualities.
In recent weeks, sectors that had long lagged the 2020 stock-market rebound, including materials, energy and financials, have seen gains accelerate, even as tech stocks' upward spiral has slowed. Since the trade war with China began in 2018, slowing global economic activity, through the horrors of the pandemic, technology companies have been the only game in town for investors seeking revenue and profit growth, said Brent Schutte, chief investment strategist at money manager Northwestern Mutual Wealth Management.
"As of September, the economic recovery started broadening out," said Mr. Schutte. "With fiscal policy support, monetary policy support, Covid impact ending, and inventory rebuilding on the manufacturing side, that has led to a broadening economy, which means a broadening market."
Shares of Tesla rebounded, however, recouping most of its significant losses Monday.
Among other mega cap tech stocks, Facebook fell by more than 2%. The social network is removing content that mentions "Stop the Steal," the battle cry for Trump supporters who falsely claim that the presidential election was rigged.
Write to Rob Curran at rob.curran@dowjones.com
(END) Dow Jones Newswires
01-12-21 1740ET
