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The Trump-inspired stock market rally dried up further as investors heeded concerns about more hawkish monetary policy, causing a major selloff in big technology stocks as indexes head to a losing week, though equities remain positive since last week’s election.
Stocks fell across the board by mid-Friday afternoon: The blue chip Dow Jones Industrial Average slipped 0.7%, or 305 points, the S&P 500 declined 1.3% and the tech-concentrated Nasdaq Composite dropped 2.2%, while the small-cap Russell 2000 dipped 1.5%.
All four of those indexes posted weekly declines, immediately after all benchmarks other than the Nasdaq posted their best weeks of 2024 amid bullishness tied to Donald Trump winning a second presidential term, with investors encouraged by what corporate tax cuts and looser regulations could mean for profit margins.
The Nasdaq 100, which tracks 100 of the U.S.’ biggest tech companies, suffered its first five-day losing streak since the first week of January, and information technology was the S&P’s worst performing sector Friday, declining 2.5%, with more than 2% drops from shares of Amazon, Meta and Nvidia leading the charge.
