NEW YORK (REUTERS) – The Nasdaq ended sharply lower on Tuesday (May 4) as investors dumped megacap growth stocks to seek shelter in more defensive parts of the market, amid concerns on rising interest rate and uncertainty over an upcoming jobs report.
Highly valued technology-related companies including Microsoft, Alphabet, Apple, Amazon.com and Facebook sold off across the board, with Apple falling the most by 3.54 per cent. The Philadelphia Semiconductor Index also dropped by 1.6 per cent.
Volume on US exchanges was 12.21 billion shares, the highest in over a month.
“When we have pauses or pullbacks, people tend to move out of growth stocks into more defensive names,” said Randy Frederick, vice-president of trading and derivatives for Charles Schwab in Austin, Texas.
Materials and financials extended their Monday gains, up by 1 per cent and 0.7 per cent, respectively, as investors continued to rotate money into cyclical sectors.