Wall Street Wavers After Strong Rally, Tech Stocks Struggle

But the sentiment has improved after reports that the countries were willing to renegotiate tariffs and trade imbalances.

At 13:00 p.m. ET, the Dow Jones Industrial Average was up 0.67 percent at 24,365.61 and the S&P 500 rose 0.29 percent to 2,666.16.

The Nasdaq Composite fell 0.33 percent at 7,196.70.

5-Year Treasury Notes

High yields at auction.

Facebook dropped 2.3 percent as it continued to be weighed down by data privacy issues. The company faces an investigation by the U.S. Federal Trade Commission to explain how it allowed data of 50 million users get into the hands of a political consultancy.

“Tech and FANG are still trying to figure out what the way forward is, and the market is dealing with the aftermath of a massive rally. It’s hard to maintain that kind of momentum,” said Michael Antonelli, managing director, institutional sales trading at Robert W. Baird in Milwaukee.

Another weak spot in the tech space was Nvidia, which fell 2.8 percent after the company temporarily suspended self-driving tests across the globe.

Tesla shares dropped nearly 4 percent after the U.S. National Transportation Safety Board opened a field investigation of a fatal Tesla crash and major vehicle fire near Mountain View, California, last week.

Twitter fell more than 7 percent after short-seller Citron Research said it was short on the stock, adding that the company was “most vulnerable” to privacy regulations.

Advancing issues outnumbered decliners on the NYSE for a 1.38-to-1 ratio and for a 1.20-to-1 ratio on the Nasdaq.

(Reporting by Sruthi Shankar and Sweta Singh in Bengaluru; Editing by Anil D’Silva)

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