Shares of Amazon, Alphabet, and other technology companies sank on Thursday as Wall Street sold them to pay for infrastructure names that could benefit from potential economic stimulus spending by President-elect Donald Trump.
Before his unexpected victory in Tuesday's election, investors had worried about uncertainty that a Trump presidency might create, but traders in the past two days have been looking to business sectors that might stand to benefit.
Amazon fell 4.7 percent to its lowest level since July, while Alphabet dropped 2.3 percent. Facebook, Apple, and Microsoft Corp lost about 2.7 percent each.
"I don't think there's anything in the new administration that's going to be negative for tech stocks," said Michael Yoshikami, head of Destination Wealth Management. "It's just that other things are more in demand, and so there's a rotation."
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In his acceptance speech, Trump reiterated his commitment to increased infrastructure spending, while striking a conciliatory note and avoiding references to controversial campaign promises.
The S&P 500 technology index dropped 2 percent on Thursday and was on track for its steepest daily decline in two months, while the materials index rose 1.27 percent. The industrial index jumped 2.1 percent, helped by a 3.8 percent surge in Caterpillar.
Banks also rallied on expectations that Trump would roll back financial regulation.
Thursday's loss leaves Apple, which is struggling with lackluster iPhones sales, up 1.9 percent in 2016, lagging the S&P 500's 6 percent rise.
