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Tech Down On Rotation Out Of Sector — Tech Roundup

Shares of technology companies declined as investors rotated into value sectors and out of highly priced growth stocks.

The stocks that have led the bull market since March, including Apple, Microsoft and Tesla, fell slightly Wednesday, and suffered an abrupt correction earlier in September.

There was "continued pressure on growth stocks, and we could be seeing a beginning of a rotation out of the stay-at-home stock trade into more cyclical growth and even some value stocks," said Oliver Pursche, an independent market strategist.

"The leadership has been so narrow and broadening that leadership would be very healthy for the market."

Shares of cloud-based data-management company Snowflake more than doubled on their market debut, giving the biggest tech IPO of the year a valuation of roughly $75 billion, more than five times the $12.4 billion valuation it notched in a private funding round in February of this year.

Top Republican lawmakers led by Sen. Marco Rubio of Florida are calling on the Trump administration to reject a deal for TikTok if it leaves strong ties between the video-sharing app's Chinese owner and proposed partner Oracle, citing national-security interests.

Online fitness startup Zwift raised $450 million in a funding round led by investment firm KKR.

 

Write to Rob Curran at rob.curran@dowjones.com

(END) Dow Jones Newswires

September 16, 2020 17:03 ET (21:03 GMT)

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