The Nasdaq slumps as big-name technology shares like Microsoft and Amazon are sold off on bond yield rises

A sell-off in technology firms has pulled down the Nasdaq and S&P 500 indexes as employers hired fewer people than expected last month.

The Nasdaq fell sharply as investors sold big-name tech shares like Microsoft and Amazon, which both dropped more than 2 per cent.

Tech led the falls, while oil and gas stocks, banks and miners led the gains on Wall Street as investors turned to sectors likely to benefit from an economic recovery on the back of fiscal stimulus and vaccination programs.

“Today is the perfect encapsulation of the big theme we’ve been seeing in the past couple of months,” Baird investment strategist Ross Mayfield said.