Tech Giants Drag Down US Stocks After Torrid Rally: Markets Wrap

  • Citi says bullish bets on tech shares are at three-year high
  • Services growth cools while orders, business activity pick up
Apple, Tesla Face Struggles in China
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Stocks came under pressure as a trio of tech heavyweights fell, with traders wading through mixed economic data in the run-up to Jerome Powell’s testimony to Congress.

Equities lost traction after a rally that has spurred concern about sky-high valuations — especially in megacaps, leaving the group vulnerable to big moves in the face of bad news. Apple Inc.’s iPhone woes in China deepened while Advanced Micro Devices Inc. hit a US roadblock in selling an artificial-intelligence chip to the Asian nation. And Tesla Inc. extended its rout as China shipments slumped.