U.S. stocks fluctuated, following the biggest advance in three weeks for the Standard & Poors 500 Index, as technology stocks declined for a third day and Tesla Motors Inc. and Priceline Group Inc. slumped.
The S&P 500 fell 0.1 percent to 1,877.33 at 9:32 a.m. in New York. The Nasdaq Composite Index dropped 0.4 percent.
Technology stocks have led this years selloff of companies whose growth are more tied to economic swings after a rally drove valuations to about double that of the S&P 500. The Nasdaq Composite Index is trading at 35 times reported earnings, compared with a multiple of 17.2 for the broad equity measure.
The Dow Jones Internet Composite Index has dropped 4.9 percent in the last two days, led by Groupon Inc., Twitter and Yahoo! Inc. An exchange-traded fund of social-media companies fell on eight of the past 11 days amid concern that user growth is slowing and valuations have become excessive.
The S&P 500 climbed yesterday as optimism that the Federal Reserve will continue to support the U.S. economy overshadowed a drop in Internet stocks.
Copy Source: Bloomberg