EDITOR'S NOTE
What looked to be a strong start to May on Wall Street quickly fizzled on Tuesday, with tech stocks leading declines.
The pullback for tech stocks comes after the megacap names largely reported blowout earnings last week.
Shares of Alphabet and Microsoft were down about 1.6%. Meanwhile, Apple tumbled 3.5%, while Amazon slid 2.2%. The tech giants have struggled to sustain momentum, despite easily beating analysts' projections a week ago.
The failure of stocks to build on strong earnings reports, either immediately or in the following sessions, has been a recurring theme this quarter. The struggles for Snap, one of the worst-performing tech names on Tuesday, are indicative of this trend.
The stock, jumped more than 7% on April 23 after a strong earnings report, rising to more than $61 per share from $57.
However, the company's dramatic fall on Tuesday erased what was left of that post-earnings pop.
"There's a 'buy the rumor, sell the fact' aspect to earnings," Stifel's Barry Bannister said on "The Exchange." "We know the earnings were great, and the market saw that. That's why it ran up November to April."
The Nasdaq Composite closed down nearly 1.9%, while the S&P 500 fell about 0.7%. The Dow Jones Industrial Average was flat, up just over 19 points.
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