Shares of technology companies fell sharply as a revival in the sector lost momentum.
Last week, the tech sector sold off heavily amid concerns about the implications of higher Treasury yields for growth sectors, but investors "bought the dip," according to analysts at brokerage Bank of America Global Research.
"Specifically, clients bought the Tech dip, with net buys of Tech stocks the largest of any week since Nov. 2019 and with inflows across all three client groups (institutions/hedge funds/private clients)," said the Bank of America analysts.
Shares of Tesla, one of the hardest hit during last week's selloff, slid again Tuesday, and are now down by more than 20% from their recent peak.
Another speculative stock that led the way in 2020, Zoom Video Technologies, initially saw its shares surge after posting higher-than-anticipated quarterly sales growth late Monday. But Zoom shares shed gains and fell sharply, in the wake of analysis from brokerage JPMorgan warning investors it could be the "last hurrah" for the surge in Zoom demand.
Another highly speculative investment, bitcoin, sold off heavily. Alphabet's Google Cloud business teamed up with Allianz and Munich Re to integrate data about customer cyber risk into insurance policies.
Write to Rob Curran at rob.curran@dowjones.com
(END) Dow Jones Newswires
03-02-21 1705ET
