Stocks Slip as Tech Sells Off

<!DOCTYPE html PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN" ""> <html><body><figure class="wp-block-image size-large"><img width="985" height="500" src="" alt="" class="wp-image-2608" srcset=" 985w, 300w, 768w" sizes="(max-width: 985px) 100vw, 985px"><figcaption>(Anna Nekrashevich/Pexels)</figcaption></figure><p>(Barron&rsquo;s) &acirc;&#128;&#148; Stocks&Acirc;&nbsp;gave up earlier gains in Wednesday&acirc;&#128;&#153;s afternoon session, as investors sold off tech stocks in favor of those in the energy sector. Wall Street was also keeping an eye on Federal Reserve Chairman Jerome Powell and Treasury Secretary Janet Yellen &acirc;&#128;&#152;s testimony, after they spoke before Congress once again.</p> <p>The&Acirc;&nbsp;<a href="">Dow Jones Industrial Average</a>&Acirc;&nbsp;was flat, giving up 3 points in Wednesday&acirc;&#128;&#153;s trading, while the&Acirc;&nbsp;&Acirc;&nbsp;<a href="">S&amp;P 500</a>&Acirc;&nbsp;&Acirc;&nbsp;fell 0.6%. Breadth in the S&amp;P 500 narrowed at the end of the day, with 258 stocks finishing up and 243 down.</p> <p>Meanwhile, the&nbsp;<a href="">Nasdaq Composite</a>&nbsp;slid 2%.&nbsp;<a href="" target="_blank" rel="noreferrer noopener">Etsy</a>&nbsp;(ticker: ETSY) shares fell 9.3%, while Tesla (TSLA) shares were off by 4.8%.</p> <p>In Wednesday&acirc;&#128;&#153;s testimony before the Senate, Powell reiterated that the Fed will continue to provide the economy the support it needs. Rates slid Wednesday, with the 10-year Treasury yield hovering around 1.614%.</p> <p>Overseas,&nbsp;<a href="" target="_blank" rel="noreferrer noopener">Germany canceled a five-day lockdown</a>&nbsp;it had planned for the Easter holiday just one day after announcing it.</p> <p>The&nbsp;<a href="">Stoxx Europe 600 index&nbsp;</a>was flat, while Asian stocks finished mostly lower, led by 2% declines each for the&nbsp;<a href="">Nikkei 225</a>&nbsp;and&nbsp;<a href="">Hang Seng</a>&nbsp;indexes. Worries that new Covid-19 restrictions rolling out across Germany and the Netherlands would crimp economic recoveries had helped drive losses for global assets on Tuesday.</p> <p>Fresh data showed a&nbsp;<a href="" target="_blank" rel="noreferrer noopener">preliminary &acirc;&#128;&#156;flash&acirc;&#128;&#157; reading&nbsp;</a>of the IHS Markit eurozone composite purchasing managers index rising to 52.5 in March from 48.8 in February. The rise above 50.0 marked the first gain in business activity since September 2020. But separately on Wednesday, German economic research group Ifo cut its growth forecast for that economy.</p> <p>Oil prices were also in focus a day after&nbsp;<a href="" target="_blank" rel="noreferrer noopener">tumbling 6% into correction territory</a>&nbsp;amid fears that Covid-19 lockdowns would crimp demand and a fast rebound. Both U.S. crude and Brent oil prices recouped some of those losses on Wednesday, up over 5% each after a massive cargo ship got&nbsp;<a href="" target="_blank" rel="noreferrer noopener">stuck in Egypt&acirc;&#128;&#153;s Suez Canal,</a>&nbsp;a vital waterway for global shipments. Energy stocks ticked up with&nbsp;<a href="" target="_blank" rel="noreferrer noopener">EOG Resources</a>&nbsp;(ticker: EOG) rising 4.1% and&nbsp;<a href="" target="_blank" rel="noreferrer noopener">Phillips 66</a>&nbsp;(PSX) popping 3.9%.</p> <p>Among stocks to watch, shares of&nbsp;<a href="" target="_blank" rel="noreferrer noopener">Intel</a>&nbsp;(INTC) fell 2.3% after Chief Executive Pat Gelsinger &nbsp;<a href="" target="_blank" rel="noreferrer noopener">committed the chip maker to spending billions</a>&nbsp;to expand its manufacturing footprint. That had a positive read-across for some European chip names, such as ASML International and&nbsp;<a href="" class="" target="_blank" rel="noreferrer noopener">ASML</a>,&nbsp;with those shares each up by 3% or more.</p> <p><a href="" target="_blank" rel="noreferrer noopener">ViacomCBS</a>&nbsp;(VIAC) shares plunged 23.2% after announcing a $3 billion secondary offering.</p> <p>Discovery (DISCK) shares also fell, sliding 13.4% in Wednesday&acirc;&#128;&#153;s trading&nbsp;<a href="" target="_blank" rel="noreferrer noopener">following a downgrade from UBS</a>.</p> <p><a href="" target="_blank" rel="noreferrer noopener">General Mills</a>&nbsp;(GIS) shares were off by 4.2% after&nbsp;<a href=";mod=article_inline" target="_blank" rel="noreferrer noopener">third quarter earnings came in weaker than expected.</a></p> <p><a href="" target="_blank" rel="noreferrer noopener">GameStop</a>&nbsp;(GME) shares tumbled 33.8% after the videogames retailer and one of Wall Street&acirc;&#128;&#153;s most popular meme stocks reported fiscal fourth-quarter results late on Tuesday that came in&nbsp;<a href="" target="_blank" rel="noreferrer noopener">just short of expectations</a>.</p> <p><a href="" target="_blank" rel="noreferrer noopener">Zscaler</a>&nbsp;&nbsp;(ZS) shares slid 4.3% despite Truist upgrading the stock to Buy from Hold.</p> <p><a href="" target="_blank" rel="noreferrer noopener">Estee Lauder</a>&nbsp;&nbsp;(EL) shares rose 1.3% after Wells Fargo upgraded the stock to Overweight from Equal Weight.</p> <p><a href="" target="_blank" rel="noreferrer noopener">Alcoa</a>&nbsp;&nbsp;(AA) climbed 4.9% after Morgan Stanley upgraded the stock to Overweight from Equal Weight.</p> <p><a href="" target="_blank" rel="noreferrer noopener">Freeport McMoRan</a>&Acirc;&nbsp;(FCX) shares fell 1.8% following a downgrade to Equal Weight from Overweight at Morgan Stanley.</p> <hr class="wp-block-separator"><p><em>&acirc;&#128;&#148; Article <a href="" target="_blank" rel="noreferrer noopener">originally</a> published by Barron&rsquo;s</em></p> <p>The post <a rel="nofollow" href="">Stocks Slip as Tech Sells Off</a> appeared first on <a rel="nofollow" href="">Market Buzz - Get informed about the companies early investors are buzzing about</a>.</p></body></html>
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