Cari Gundee rides her Peloton exercise bike at her home on April 06, 2020 in San Anselmo, California. More and more people are turning to Peloton because of orders for shelters on site because of the coronavirus (COVID-19).
Ezra Shaw | Getty Images
Home trade that flourished during the pandemic market turmoil turns upside down on Wednesday as investors abandoned the names of hot technologies amid the reopening of the economy.
Amazon and Netflix fell more than 2% every Wednesday, after hitting record highs last week. Peloton fell 6%, while video game companies Activision Blizzard and Electronic Arts fell 3%. Zoom Video also fell 8.5% on Wednesday morning trading.
These tech stocks had been a positive in a market that had suffered the worst first quarter of all time and the fastest bear market on record. Investors flocked to these names benefiting from social distancing restrictions and home support orders amid the coronavirus pandemic. Amazon and Netflix were among the first to fully recover its March losses, both up more than 20% this year.
Showing their influence on the whole market, the S&P 500 fell into negative territory due to the loss of household stocks.
However, management has moved to the most affected areas of the market. On Wednesday, some of the biggest winners were cruise ship operators, retailers and airlines whose profitability is directly linked to the economic reopening.
Retailers Gap and Kohl’s rose more than 7% each; Carnival and Norwegian Cruise Line increased by 15.9% and 13.9% respectively; while Delta, United and American increased 7.2%, 9.5% and 9.9%.
On Wednesday, the 50 states began to reopen to some extent, two months after the pandemic that plunged the country into isolation. California Governor Gavin Newsom said on Tuesday that most of the state’s hair salons and barbershops could reopen with modifications. Nevada Governor Steve Sisolak said the state is entering the second phase of its reopening plan, which will reopen gymnasiums and bars on Friday, followed by casinos on June 4.
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