U.S. stocks closed lower Wednesday as investors continued to pullback from the technology stocks that led the market higher for much of the last year.
All three major indexes closed in negative territory after starting the day higher. As the session continued, losses among technology stocks widened, pulling down the Nasdaq Composite and the S&P 500. The Dow Jones Industrial Average tumbled into the red just before the closing bell.
Stocks have seesawed so far this week as investors have continued to try to make sense of ongoing volatility in the U.S. government bond market. Money managers have also been assessing the valuations on stocks after the major indexes climbed over 70% since the pandemic-fueled rout last March.
Investors said a catalyst behind a late-day pullback wasn’t immediately clear.
“It was surprising to see the market tail off at the end of the day,” said Chris Zaccarelli, chief investment officer of Independent Advisor Alliance. “We had what was a typical cyclical stocks rally.”