Shares of technology companies fell as investors rotated into "value" sectors that have more to gain from the passage of an economic stimulus bill.
Mega-cap tech giants such as Apple and Amazon.com surged during the second and third quarters as they were among the few companies that were able to grow revenue during the pits of the pandemic lockdown. Strategists say investors are now booking profits in these richly priced growth stocks and may be rotating into materials, financials, airlines and other value stocks that have lagged the market during the recent rebound.
"The tech sector has done so well," said Joe Kinahan, chief market strategist at TD Ameritrade. The sector was "maybe pressured by people taking some profits on the sector, as they start to decide where to redeploy their money, on the reopening trade or the stimulus trade wherever it may be."
Shares of electric-car maker Tesla rose slightly after it posted robust quarterly earnings and reiterated its goal of selling half-a-million vehicles in 2020.
Write to Rob Curran at rob.curran@dowjones.com
(END) Dow Jones Newswires
10-22-20 1710ET
