Wall Street down on flight from tech stocks

Wall Street down on flight from tech stocks

Wall Street's major indexes lost ground on Tuesday as investors moved out of market-leading growth stocks, though a rotation into cyclical value stocks indicated hopes of economic revival as states began to relax restrictions enacted to fight the deadly COVID-19 pandemic.

Yahaira Jacquez reports.

A volatile day on Wall Street Tuesday ended with losses across the board.

The Nasdaq was hit the hardest, weighed down by technology stocks, including Facebook and Amazon.

While the Dow and S&P 500 also finished only slightly lower, after riding out sharp swings during the session.

Overall, April has been a stellar month for stocks, with the market clawing back from deep losses.

But economist Max Wolff of Multivariate says he's worried that investors haven't priced in the new economy people will return to once lockdowns have ended.

(SOUNDBITE) (English) ECONOMIST AND MANAGING MEMBER, MULTIVARIATE, MAX WOLFF, SAYING: "My biggest worry is about the following.

The market seems to be fixated on getting back from the quarantine.

I certainly understand that after being in quarantine with everyone else.

But the truth is what we get back to isn't what we left.

And I don't see any indication that we've priced that." Meanwhile - Google's parent company Alphabet kicked off a spate of big tech earnings this week, reporting after the closing bell.

It beat Wall Street expectations on revenue, which was up 13% in the first quarter compared to same period last year after its Google unit experienced a smaller drop-off in ad spending than what was expected.

Also reporting late in the session, Starbucks, which posted a 10% drop in global sales.

The coffee chain's shares fell after the bell.