Traders work on the floor of the New York Stock Exchange.
U.S. stocks fell Tuesday, resuming their 2024 struggles.
Several tech names were in the red Tuesday, taking back the sector’s whopping gains seen on Monday. Unity Software price lost 7.6% after the company said it would lay off roughly 25% of its workforce, and Netflix shares declined just less than 1% on a Citi downgrade. Apple shares were also down about 0.8%, while Tesla lost more than 2.5%.
On a more positive note, shares of Juniper Networks popped more than 21% on Tuesday after a Wall Street Journal report said Hewlett Packard Enterprise could announce a deal to acquire the networking hardware company for about $13 billion as soon as this week.
Health care was the winning sector in the S&P 500, up by 0.33%.
“We’re moving away from away from Big Tech, and we’re going into deeper parts of the market that had but actually unloved… For example, we’re seeing more buyers interested in health care,” said LPL Financial chief global strategist Quincy Krosby. “The broadening yesterday included the Russell 2000, and that’s helpful for the tone of the market.”
Those moves come after a strong trading session for equities. The S&P 500 and the Nasdaq Composite on Monday rallied as mega-cap tech stocks bounced from last week’s declines, with shares of Nvidia reaching an all-time high.
Later this week, investors will parse through a pair of key inflation readings to gain clarity into the path forward for rate cuts from the Federal Reserve. The December consumer price index is set for release Thursday, followed by the producer price index on Friday.