The S&P 500 slid for a second straight session Wednesday, pulled down by big cap tech stocks.
The S&P and Dow had spent most of the day in positive territory, buoyed by solid economic data on factory activity and words of optimism about the recovery from Federal Reserve Chair Jerome Powell and Treasury Secretary Janet Yellen who testified before the Senate. But by the day’s end- those gains were gone with Apple, Tesla and Facebook all declining.
The S&P 500 fell a half percent. The Dow closed nearly flat. The Nasdaq fell 2%.
Despite this week’s pullback, the S&P 500 has skyrocketed 77% since lows hit last March, but Aristotle Capital Management senior global research analyst Sean Thorpe says the bull market is not over.
“I think we've got some room to run. It has been a strong period of time, both domestically, internationally, but I think we I think we're I think we're OK.”
Shares of Intel also pressured the three major indexes, pulling back 2%. The semiconductor giant plans to spend as much as $20 billion to build two plants in Arizona and open them to outside customers.
Shares of Reddit-favorite GameStop tumbled 34% to close near session lows. The video game retailer said it may increase its share offering, taking advantage of the surge in its stock price, to fund its e-commerce expansion.