Shares of technology companies fell as a rotation out of the sector and into less richly priced value stocks gathered momentum.
The tech-heavy Nasdaq Composite registered its biggest daily drop in two months as the sector, which had led the stock market for the first year of its recovery from pandemic lows, continued a fall from favor.
Shares of Apple fell sharply, turning negative on the year, as inflation expectations spurred a move out of growth stocks and into value stocks. Epic Games is attacking a core tenet of Apple's App Store -- that its success relies upon rigorous policing of the platform, as a bruising court battle between the two continues.
Shares of electric-car maker Tesla plunged as speculative fervor around the electric-vehicle niche cooled off. Chief Executive Elon Musk appeared on comedy show "Saturday Night Live" over the weekend, and the National Transportation Safety Board released a preliminary report that raised more questions about the fatal crash of a Tesla sedan.
Self-driving truck company PlusAI announced an agreement to merge with a special-purpose acquisition company that could make the startup the second autonomous driving provider to list on a U.S. exchange. Rival TuSimple Holdings made its debut last month in a $1.35 billion initial public offering on the Nasdaq stock market.
Write to Rob Curran at rob.curran@dowjones.com
(END) Dow Jones Newswires
05-10-21 1629ET
