EDITOR'S NOTE
The best-performing market sector this year was Wall Street’s biggest source of weakness on Wednesday.
Tech, which is up more than 35% in 2020, dropped 1.9% on the day as shares of Apple, Salesforce and Facebook all declined. Stocks of semiconductor producers also fell broadly to pressure the sector.
Those losses knocked the major averages off record highs set earlier in the day. The Dow Jones Industrial Average closed lower by 105 points, or 0.35%. The S&P 500 dropped 0.8%, and the Nasdaq Composite pulled back by 1.9%.
Wednesday’s losses came amid lingering uncertainty over additional U.S. coronavirus fiscal stimulus. Senate Majority Leader Mitch McConnell told Politico that Republicans and Democrats were "still looking for a way forward" on new aid.
However, Keith Lerner, chief market strategist at Truist, thinks this is just a minor pullback following the market’s recent run higher.
"I think we're having a bit of a digestion day after hitting new highs," Lerner said. "There's some hesitation because of the stimulus talks, but leadership still shows the market is leaning toward something happening" on that front, he said.
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