Nasdaq ends lower as tech slides

The Nasdaq closed lower while the S&P 500 was little changed Wednesday as investors rotated out of technology shares and concerns about inflation pressured some stocks. Fred Katayama reports.

Video Transcript

FRED KATAYAMA: A rotation out of tech shares into cyclical stocks drove the NASDAQ lower but the Dow higher Wednesday. Big-name tech stocks like Apple and Nvidia weighed on the NASDAQ and S&P 500 as did concerns over inflation.

Summit Place Financial Advisors President Liz Miller says investors are adjusting their portfolios as they lighten up on tech.

LIZ MILLER: I think the slight negative tilt we're seeing is just that. There were a lot of gains last year, and investors are just digesting new information and the year-end-result information to reposition for the rest of 2021.

FRED KATAYAMA: The NASDAQ closed down more than 1/2%, and the S&P 500 ended just below the break-even line. But the Dow added a little over a quarter percent. The blue-chip index got a lift from Verizon and Chevron. Shares of the telecom and oil giants rose after Warren Buffett's Berkshire Hathaway disclosed it had taken major stakes in both companies.

Wells Fargo shares jumped 5%. A report said the Fed accepted the bank's proposal to overhaul its risk management and governance. The bank has been trying to recover from a sales scandal that emerged in 2016.

Shopify shares slid more than 3%. The Canadian e-commerce giant that benefited from the online-shopping surge last year hinted that revenue growth would slow in 2021 as people returned to stores.