Big Tech Just Had a Bad Day on Wall St.

American Airlines was among the big winners
By Newser Editors and Wire Services
Posted Feb 22, 2021 3:50 PM CST
Tesla Drops 8.5% on Bad Day for Big Tech
In this photo provided by the New York Stock Exchange, trader Neil Catania works on the floor, Monday Feb. 22, 2021.   (Courtney Crow/New York Stock Exchange via AP)

(Newser) – Stocks closed mostly lower on Wall Street Monday, dragged down by losses in several Big Tech companies. The pullback helped drag down the Nasdaq and the S&P 500, while the Dow, which isn't as heavily weighted with tech stocks, rose, the AP reports. The S&P 500 fell 30.21 points, or 0.8%, to 3,876.50, in its fifth straight loss. The Dow Jones Industrial Average rose 27.37 points, or 0.1%, to 31,521.69. The Nasdaq fell 341.41 points, or 2.5%, to 13,533.05. Tech stocks have enjoyed big gains throughout the pandemic, as investors bet that consumers spending more time at home would increasingly rely on mobile devices, PCs, video streaming, and other technology products and services.

But as the number of new coronavirus cases declines after a sharp spike late last year and more people get vaccinated, investors are beginning to snap up stocks in areas of the market that are expected to do better in a post-pandemic economy. "They parked in technology as a temporary place for their capital while the pandemic raged, and now they're looking to go back to their pre-COVID asset allocation," said Mike Zigmont, director of trading and research at Harvest Volatility Management. CNBC reports that Tesla plunged 8.55%, its biggest fall since September last year. Apple, Amazon, and Microsoft each fell more than 2%, while American Airlines jumped 10.9%.

(Read more stock market stories.)

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