(Bloomberg) — Wall Street traders sent stocks sliding on speculation that a rally to multiple records this year is now overdone.
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Just when investors were wrapping their heads around a mixed jobs report, weakness in the S&P 500’s most-influential group weighed heavily on trading. Technology came under pressure, with the Nasdaq 100 down 1.5% and Nvidia Corp. halting a six-day winning streak. Tesla Inc. extended this week’s slump to 13% and Broadcom Inc. tumbled on slow chip sales.
Warnings about an overbought market have surfaced after an almost 35% surge in the S&P 500 since the start of last year. Bank of America Corp.’s Michael Hartnett — who has taken a more neutral tone on stocks after remaining bearish in 2023 — said equities are showing “abnormal gains” in “abnormal times.” That’s left positioning “stretched and extended” ahead of expectations for an eventual rate cut.
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