Shares of technology companies fell as investors rotated into more cyclical sectors in light of valuation concerns.
"Wall Street seems committed in the short-term to continue with the big rotation into small caps and out of FAANG stocks," said Edward Moya, senior market analyst at foreign-exchange brokerage OANDA Group, in a note to clients, referring to the group of "mega-cap" tech stocks that includes Facebook, Amazon.com and Apple.
Investors were still bidding up some tech stocks, though. Poshmark's shares more than doubled in its trading debut, opening at $97.50 a share, reflecting a soaring market for public offerings and expectations that secondhand stores online will continue to do brisk business.
Network-equipment giant Cisco Systems struck a new deal to buy Acacia Communications, boosting its original purchasing offer by 64%.
GameStop shares continued to rise in what was seen as a coup for stock pundits on message board Reddit, which had advised buying shares of the gaming store because short-sellers held a disproportionate number of shares.
Taiwan Semiconductor Manufacturing, a key chip supplier to Apple, plans to spend between $25 billion and $28 billion in 2021 on developing advanced chips and building plant capacity, capitalizing on a surge in semiconductor demand that has led to a shortfall in global supplies.
Write to Rob Curran at rob.curran@dowjones.com
(END) Dow Jones Newswires
01-14-21 1726ET
