Why did the Nasdaq Composite lose ground on the day?

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Nasdaq Composite Declined Amid Rotation to Reopening Economy Stocks

The Nasdaq Composite fell 0.5 per cent, or 67.85 points, to close at 13,465.20, primarily driven by a sector rotation favouring companies poised to benefit from an economic reopening over growth-oriented tech stocks that had previously thrived during pandemic-related lockdowns. This shift in investor sentiment led to significant percentage losses across the technology sector.
Tech Shares Experienced Largest Percentage Losses

Technology stocks, which form a substantial part of the Nasdaq's composition, bore the brunt of the day's selloff, marking the largest percentage declines among the major market sectors. This broad weakness in tech shares directly impacted the index's overall performance.
Specific Tech and Crypto Companies Saw Steep Declines

Several prominent tech and cryptocurrency-related companies experienced considerable drops. Tesla Inc lost 2.2 per cent, influenced by the general tech downturn and a concurrent fall in the price of bitcoin. Companies involved in cryptocurrency mining, such as Riot Blockchain Inc and Marathon Patent Group Inc, saw significant plunges of 24.6 per cent and 23.0 per cent, respectively. Silvergate Capital Corp, a bank focused on the cryptocurrency sector, also slid by 20.1 per cent.
Market Sentiment Favoured Reopening Economy Stocks

The broader market sentiment indicated a preference for stocks expected to gain from the easing of economic restrictions as vaccine deployment progresses. This trend saw investors shifting away from the high-growth stocks that had previously benefited from lockdown conditions, contributing to the pressure on the Nasdaq and its constituent tech companies.

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Why did the Nasdaq Composite lose ground on the day?

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