Investing.com – US stocks closed lower on Tuesday as investors appeared to take profit on the rebound in tech stocks, which weighed on the broader indexes.
The slump in the tech-heavy Nasdaq comes as tech stocks struggled to hold onto early-session gains as investors appeared to take profit on the rebound in the tech sector, a day after it slumped more than 1% on expectations that the so-called rotation trade favored value stocks over growth stocks.
The tech sector pared some of its gains to end session just 0.21% higher amid a rebound in the FANG group of Facebook Inc (NASDAQ:FB)., Amazon.com Inc (NASDAQ:AMZN)., Netflix Inc (NASDAQ:NFLX). and Google parent Alphabet (NASDAQ:GOOGL).
Also adding to negative sentiment was data showing service sector activity undershot expectations in November.
The Institute for Supply Management's non-manufacturing purchasing managers' index showed a reading of 57.4 for November compared to 60.1 in October, missing economists' expectations for a reading of 59.
On the corporate news front, Snap Inc (NYSE:SNAP) closed more than 9% after Barclays expressed optimism that the social media company could start “hitting or exceeding” revenue expectation in 2018.
'Bulls and Bears' on Wall Street
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