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Stocks pulled back on Thursday after a continued market rotation powered the Dow Jones Industrial Average to fresh highs.
The 30-stock index lost 479.84 points, or 1%, from Wednesday’s all-time high to pause for lunch Thursday at 48,774.98.
The S&P 500 gave back 85.97 points, or 1.3%, to 6,765.32, with declines in the communication services and information technology sectors leading the way
The NASDAQ tumbled 448.42 points, or 1.9%, to 22,958.03.
Despite the NASDAQ starting off the week strong, pressure has since resumed as investors continued to sell shares of technology companies, especially those in the artificial intelligence trade, amid worries about their valuations.
The tech-heavy index was on track to close with a third straight day of losses Thursday, weighed down by heavyweights Nvidia, Broadcom and Alphabet.
Disney was one the key laggards during the session as well, with shares falling 9% on mixed results for the company’s fiscal fourth quarter.
Wednesday again saw a divergence between tech stocks and other groups.
Prices for the 10-year Treasury lost strength, raising yields to 4.10% from Wednesday’s 4.07%. Treasury prices and yields move in opposite directions.
Oil prices rallied 51 cents to $59.09 U.S. a barrel.
Gold prices ditched $8.20 to $4,205.40 U.S. an ounce.
Dow Stumbles by Noon
