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Wall Street rally fizzles out for tech heavyweights – Sydney Morning Herald
The US sharemarket ended trading lower overnight, pulled down by Amazon, Microsoft and other big-name leaders of its recent rally, as investors are bracing for an ugly earnings season.
The US sharemarket ended trading lower on Monday, pulled down by Amazon, Microsoft and other big-name leaders of Wall Street’s recent rally.
The S&P 500 dipped after briefly touching its highest level since February 25. The index has rebounded over 40 per cent since mid-March, even as COVID-19 infections rose rapidly in Arizona, California and Texas and about 35 other states.
Stocks that outperformed in recent months, including Amazon , Microsoft, Nvidia and Facebook ended down more than 2 per cent after gaining earlier in the day.
“The rally’s been driven by a handful of names. You’ve had headlines about COVID and layoffs and the economy. It’s finally caught up with these names everybody’s been hiding in,” said Michael O’Rourke, chief market strategist at JonesTrading in Stamford, Connecticut.
Hopes for progress on a coronavirus vaccine had helped the Nasdaq hit an intraday high, but it couldn’t hold on to the gains.Credit:Bloomberg
