Shares of technology companies fell, but not by as much as the broad market, as traders hedged their bets on the outlook for Treasury yields.

The recent rotation out of "mega cap growth" and into small caps and value stocks triggered by higher Treasury yields may be overdone, and contrarian indicators suggest a short-term reversion of the trend was due, according to one brokerage. "Futures positioning suggests that institutional asset managers may be too bullish on the Russell 2000 [small caps] and too bearish on the Nasdaq 100," said strategists at Bank of America Securities, in a note to clients.

Israeli startup ironSource, which provides advertising services for app-based game developers such as Activision Blizzard, agreed on Sunday to merge with a special purpose acquisitions company, or SPAC, in a deal that will take it public, valuing it at $11.1 billion.

Microsoft is in talks to buy videogame-focused social network Discord for about $10 billion, its latest effort to expand its gaming business, following the $7.5 billion purchase of ZeniMax last year and the $2.5 billion deal that scored the company the hit game "Minecraft" in 2014.

Tesla Chief Executive Elon Musk appeared to court China, whose government has recently sounded critical notes about the electric-car maker, praising Beijing's plans to tackle carbon emissions and grow its economy. 


 Write to Rob Curran at rob.curran@dowjones.com

(END) Dow Jones Newswires

03-23-21 1713ET