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Nasdaq advances as technology sector rebounds

CNBC logo CNBC 12/5/2017 Fred Imbert

The Nasdaq traded higher Tuesday as technology rebounded from a sell-off that started last week.

The index was up by 0.4 percent, with Facebook, Amazon, Netflix and Google-parent Alphabet all rising.

The S&P 500 was flat, while the Dow fell 20 points. 

Tech, the best-performing sector this year, has taken a hit recently, sliding about 3 percent over the past week as investors assess a major tax bill passed by Senate members.

The Senate passed a key bill over the weekend that moved the Republicans closer to overhauling the corporate tax system and significantly lower corporate taxes.

"What we saw was the market moving into stocks that clearly benefit from lower corporate taxes," said Quincy Krosby, a chief market strategist at Prudential Financial.

Financials, meanwhile, are up more than 3 percent over the past week. In theory, the proposed changes would help banks and financials more than tech companies, since they currently pay a higher effective tax rate.

"It seems like since we've entered December, there has been some reallocation in the market," said Daniel Deming, a managing director at KKM Financial. "There seems to be a lot of churning underneath of what is a pretty calm surface."

In corporate news, Snap shot 9.3 percent higher after Barclays said the social media could hit a turning point in 2018.

AutoZone also ticked higher after the company reported better-than-expected quarterly results.


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