Late gains reverse most of an early slide on stock market

A late-afternoon burst of buying on Wall Street helped reverse most of a stock market sell-off Tuesday, nudging the S&P 500 to its first gain after a fiveday losing streak.

The benchmark index eked out a 0.1% gain after having been down more than 1.8% earlier. The Nasdaq lost 0.5% as technology stocks fell for a sixth straight day. The techheavy index had been down nearly 4%. The Dow Jones Industrial Average, which is less exposed to tech stocks than the two other indexes, managed to rise 0.1%.

Facebook, Disney, Netflix and other communications stocks helped drive the market’s comeback. Financial and energy companies also helped lift the market, outweighing losses in technology and other sectors. Bond yields held near their highest level in a year.

Still, the main reason the market didn’t rack up bigger losses is the wave of selling in Big Tech stocks nearly reversed entirely as traders seized the opportunity to pickup shares in Apple, Microsoft, Amazon and other big gainers over the past year at a more attractive price. Tesla, which joined the S&P 500 at the end of last year, ended down 2.2% after being down as much as 13.4%.

The S&P 500 index rose 4.87 points to 3,881.37. The Dow gained 15.66 points to 31,537.35. The Nasdaq lost 67.85 points to 13,465.20. The indexes were at alltime highs less than two weeks ago.

Smaller company stocks fell more than the broader market. The Russell 2000 small-cap index slid 19.76 points, or 0.9%, to 2,231.21. The index, the biggest gainer so far this year, clawed back from a 3.6% slide.

Since the pandemic began, investors consistently pushed the prices of Big Tech stocks to stratospheric heights, betting that quarantined consumers would do most of their shopping online and spend more on devices and services for entertainment.