U.S. stocks closed mixed on Friday on pressure from this year’s best-performing sector: technology.
The Nasdaq composite hit a record high at the open before closing 1.8 percent lower. Shares of Apple, Facebook, Amazon, Netflix and Google-parent Alphabet all fell more than 3 percent.
The tech-heavy index also posted its worst weekly performance of the year.
Still, “you’re not seeing any major fundamental factors that would drive tech lower here,” said Mike Bailey, director of research at FBB Capital Partners.
Dave Lutz, head of ETF trading at JonesTrading, pointed out that Nvidia had risen more than 5 percent earlier in the session before trading 6.5 percent lower. “That could be a signal that some traders are looking into,” he said.
Momentum names like Priceline and Tesla also took a hit, falling 2.6 percent and 3.4 percent, respectively.
The S&P 500 closed 0.1 percent lower, erasing earlier gains, with information technology dropping more than 2.5 percent. To be sure, tech has had a stellar year, rising about 20 percent in the period to lead all sectors.
“There’s a rotation from tech into different sectors,” said JonesTrading’s Lutz, noting financials and energy, two of this year’s laggards, are outperforming Friday.
Financials received a boost from higher bank stocks, as the SPDR S&P Bank ETF (KBE) advanced 2.9 percent. The ETF was also on track for its best week of the year. Energy, meanwhile, advanced 2.5 percent to lead
The Dow Jones industrial average rose about 90 points, notching a record close with Goldman Sachs contributing the most gains.
Stocks hit record intraday highs earlier in the session, as investors shook off a widely unexpected result to the general election in the United Kingdom.
Prime Minster Theresa May’s Conservative party lost its parliamentary majority in the process, coming up with 318 of 650 seats. Conservatives held a 17-seat majority before the contest. Some pollsters expected May’s party to retain the majority while others expected them to build on it. That said, no other party came out with a clear majority.