Shares of technology companies rose, but not by as much as the broad market, as surprisingly strong economic data sparked a rotation into more highly cyclical sectors such as industrials, materials and financials.

The tech sector led the stock market during the 2020 pandemic-era rally because it was among the few industry groups that was not hamstrung by lockdowns. Now, stocks whose prospects are more closely tied to the U.S. economy, are seeing a takeoff. The Russell 2000 index of small caps rose by more than 2%, even as the Nasdaq Composite finished flat.

Shares of Google parent Alphabet rose after analysts at brokerage Morgan Stanley said the company could be a "dark horse" beneficiary of the economic recovery.

Fresh concerns about companies from China being kicked off American exchanges pushed an index of U.S.-traded Chinese stocks into bear-market territory. 


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

(END) Dow Jones Newswires

03-25-21 1716ET