The Nasdaq ended sharply lower on Wednesday after investors sold high-flying technology shares and pivoted to sectors that stand to benefit from an economic recovery.
The Dow and S&P 500 also fell.. with Microsoft, Apple and Amazon weighing on the S&P more than any other stocks.
Meanwhile, government bond yields ticked higher -- reflecting investors' optimism about the economy, but hurting growth stocks, which have relied on easy money borrowing to fuel their rise.
JJ Kinahan, chief market strategist at TD Ameritrade says investors are weighing the impact of higher bond yields and what they mean for stocks.
"I think where we’re really heading is people trying to figure out what to do right now and what I mean by that is you saw the sharp increase in bond yields over the past few weeks and at the same time, what’s been tough for people to figure out is that there have been
many days where bond yields are higher and so are stocks. Or bond yields go lower and so do stocks. That’s not a normal relationship. So what that tells me is that there is an adjustment of assets."
While tech fell, travel stocks, including American Airlines and Carnival Cruises, jumped more than 3%
Meanwhile Lyft bucked the tech trend, rising more than 8% after the ride-sharing company reported strong February ride figures and said it’s seeing ride-sharing recover sooner than expected.
Its optimism also helped lift shares of its rival, Uber.