After a Strong Rally, US Stocks Are Dragged Down by Technology Giants – US Market Wrap.

Stocks fell as a trio of tech heavyweights slid, with traders navigating mixed economic data ahead of Jerome Powell’s testimony to Congress. 

Equities lost traction following a rally that raised concerns about sky-high valuations, particularly in megacaps, leaving the sector vulnerable to large moves in the face of bad news. Apple’s iPhone woes in China worsened, while Advanced Micro Devices encountered a US roadblock in selling an artificial-intelligence chip to the Asian country. Tesla’s rout continued as Chinese shipments fell.

Wall Street also considered data showing that the US service sector cooled, even as orders and business activity increased. Powell headed to Capitol Hill for his semiannual testimony before Congress, where he is expected to reiterate the Federal Reserve’s lack of urgency to cut interest rates.

The S&P 500 fell 1%, while the Nasdaq 100 dropped the most since January. Tesla extended its two-day slide to 11%, while Apple suffered its fifth consecutive loss. Nvidia rose. Treasury 10-year yields fell eight basis points, to 4.13%. Bitcoin reached a new high before losing ground. Gold also reached an all-time high.