Tech stocks continue sharp slump as economic-recovery prospects stoke inflation fears

SourceBusiness Insider
SectorFinancial Markets
CountryMiddle east

US equities broadly fell on Tuesday as positioning for strong economic growth and a pickup in inflation weighed on the tech sector. Growth favorites faced fresh pressure after the open as investors bet on Biden-backed stimulus to supercharge the US recovery. The increasing likelihood of a stimulus boost has revived concerns of near-term inflation as fiscal support lifts consumer spending. Value stocks and small caps historically outperform momentum names as inflation rises. Tech mega-caps that fueled the market's first bounce from pandemic lows saw the most intense selling. The Dow Jones industrial average outperformed amid hopes the economic rebound would revive ailing sectors. Here's where US indexes stood shortly after the 9:30 a.m.

ET open on Tuesday: The tech-led decline mirrors the drop seen to start the week. Stocks closed mixed on Monday as inflation concerns pulled cash out of large-cap names and into reopening bets. The Nasdaq composite ended the session down nearly 2.5%, while the Dow rose slightly.  Falling COVID-19 case counts have also...read more...