Bloomberg: Three words can explain the late fade in stocks: semiconductors, software and hardware. Or to say it another way: sell your winners. Those three groups are suffering the biggest percentage declines in the last hour of trading among the S&P 500’s 24 groups.
There’s no clear catalyst for the late drop in stocks but selling in the largest-cap and best-performing companies certainly makes the red session that much more vivid. If it was a rotation trade, one would expect cyclicals to outperform, but that’s not occurring. Instead the usual haven sectors -- utilities and household products -- are falling by a far smaller amount in the last hour than the shiny tech names.
There’s no clear catalyst for the late drop in stocks but selling in the largest-cap and best-performing companies certainly makes the red session that much more vivid. If it was a rotation trade, one would expect cyclicals to outperform, but that’s not occurring. Instead the usual haven sectors -- utilities and household products -- are falling by a far smaller amount in the last hour than the shiny tech names.