Wall Street posts second straight weekly drop on tech slide

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NEW YORK (Reuters) – The Nasdaq slid and the S&P 500 closed little changed on Friday as early gains in technology and growth names faded, with each of the three major Wall Street averages posting their second straight weekly decline.

After hitting a record high of $61.86, shares of Oracle Corp ORCL.N turned lower along with the rest of the technology sector .SPLRCT, which closed down 0.75%. The cloud services company’s earnings beat estimates as it signaled a recovery in client spending due to higher demand led by the work-at-home trend.

The tech sector posted its fifth decline in six days and biggest weekly percentage decline since March as investors sold companies such as Apple Inc AAPL.O that have spearheaded the dramatic rally from coronavirus-driven lows in March. Apple shares slid 1.31%.

The path of least resistance for stocks is volatile and probably a bit lower from here, said Art Hogan, chief market strategist at National Securities in New York.

“Just because we shaved 10 or 11 percent off the Nasdaq in three days doesn’t mean that is the end of the nervousness and that is kind of where we are right now,” Hogan said.

Growth stocks .IGX, which include many tech names along with others that have benefited from government-imposed lockdowns such as Amazon.com Inc AMZN.O, fell 0.26% while value names .IVX edged up 0.54%. Amazon fell 1.86%.

About once a month the market experiences several days or a bit more of investors dropping growth for value, said Tim Ghriskey, chief investment strategist at Inverness Counsel in New York.

FILE PHOTO: The Wall Street sign is pictured at the New York Stock exchange (NYSE) in the Manhattan borough of New York City, New York, U.S., March 9, 2020. REUTERS/Carlo Allegri/File Photo

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