Shares of technology companies rose, but not by as much as the broad market, as a rotation out of the sector continued.
“If you look at any industry that’s been overcapitalized over a long period of time it takes a while for the market to digest that,” said Eric Marshall, president of mutual-fund firm Hodges Capital.
“You saw it back in the Dotcom era where we had several years of easy capital formation within the tech sector to be followed by a decade of underperformance of tech.”
While there will always be some growth companies that lure investors, “there’s probably still some wood to chop within the tech sector,” Mr. Marshall said.
Shares of Yelp fell after analysts at brokerage JPMorgan cut their rating on the review Web site’s shares.
The European Union’s antitrust watchdog will open an investigation into chip maker Broadcom’s planned $61 billion acquisition of virtualization software company VMware.
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