U.S. stocks traded lower on Monday amid renewed pressure on technology stocks.
The Nasdaq composite and the Nasdaq 100 indexes fell 0.7 percent and 0.9 percent respectively, with shares of Apple falling after Mizuho Securities downgraded the stock to neutral from buy. Analyst Abhey Lamba said the best-case scenario is priced into the shares.
Other big tech stocks followed Apple lower, with Amazon, Alphabet, Netflix and Facebook all declining.
Also, the Technology Select Sector SPDR ETF (XLK) broke below its 50-day moving average for the first time since April 18.
Tech knocked the S&P and Nasdaq off of record highs Friday, as the best-performing sector of 2017 posted its worst session since May 17.
“The bulls are pointing out that Friday was merely a ‘factor’ rotation. Out of favor sectors or recent underperformers (like Financials) benefitted at the expense tech,” said Peter Tchir, managing director at Brean Capital, in a note sent Monday.
“This was a ‘student body left’ to ‘student body right’ sort of swing in sentiment. It seemed unnatural with little catalyst – other than price,” Tchir said.
The S&P 500 slipped 0.28 percent, with information technology dropping 1.1 percent to lead decliners. The Dow Jones industrial average fell 60 points, with Apple contributing the most losses.