The S&P 500 dropped Wednesday, weighed down by technology shares, as financiers waited for the Federal Reserves newest economic outlook and any signals on the future of interest rates and bond purchases.
The broad U.S. stock index slid 0.5%, while the tech-heavy Nasdaq Composite fell 1.2%. The Dow Jones Industrial Average, on the other hand, edged up 0.3%, or about 95 points.
Shares of big tech stocks helped pull major indexes lower, with Apple retreating more than 2% and Microsoft and Google moms and dad Alphabet falling more than 1%.
Investors in recent weeks have cut bets on the technology stocks that skyrocketed previously in the coronavirus pandemic while adding shares of economically-sensitive companies that need to succeed as the vaccine rollout advances and more fiscal stimulus goes into the monetary system. Shares of Apple and are down 7.5% and 5.2% this year, respectively, while the energy and monetary sectors are leading the S&P 500.
” Tech is the funding source for reallocation,” stated Jamie Cox, handling partner for Harris Financial Group. “Youre bring back the allotments that you had pre-pandemic.”