A steep slide in technology companies pulled stocks lower Thursday, erasing gains from the previous day.
Investors also sold big-dividend stocks as bond yields rose. Banks and energy stocks bucked the broader market decline. Crude oil prices closed higher for the sixth straight day.
The shift out of the technology sector came as investors bet central bankers may be ready to lift interest rates. That spurred many traders to move out of growth sectors, like technology, and into value stocks, such as banks, said Erik Davidson, chief investment officer at Wells Fargo Private Bank.
“It’s been a good day for energy and financials and a terrible day in particular for technology,” Davidson said. “To the extent that you’re going to be looking to put money into financials, into energy, you have to pull it from somewhere, and the sector that has done best so far this year is technology.”
The Standard & Poor’s 500 index fell 0.86 percent to 2,419.70. The Dow Jones industrial average slid 167.58 points to 21,287.03. The average was down briefly more than 257 points. The Nasdaq composite fell 1.44 percent to 6,144.35. The Russell 2000 index of small-company stocks gave up 9.07 points, or 0.6 percent, to 1,416.20.
Bond prices fell. The 10-year Treasury yield rose to 2.27 percent from 2.23 percent late Wednesday. — AP