NEW YORK (Reuters) – 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.
The New York Stock Exchange (NYSE) is seen in the financial district of lower Manhattan during the outbreak of the coronavirus disease (COVID-19) in New York City, U.S., April 26, 2020. REUTERS/Jeenah Moon
While technology stocks pulled all three major U.S. stock indexes into the red, they all remained within 20% of their February all-time highs.
“The stock market today is about money coming out of tech and going into economically sensitive value stocks, where prices have suffered the most,” said Tim Ghriskey, chief investment strategist at Inverness Counsel in New York. “The sense that states are opening up and the economy is beginning to grow again is causing this rotation.”
Smaller companies have fared better than larger ones in recent days, as they stand to benefit more from the state-by-state easing of shutdown restrictions. The Russell 2000 , which tracks small-cap companies, posted its fifth straight advance.
But with U.S. coronavirus cases topping 1 milli