US STOCKS-Nasdaq declines as tech sell-off resumes; cyclical stocks rise

The Nasdaq index fell in choppy trading on Wednesday as investors continued to sell technology-related stocks, while the S&P 500 and the Dow Jones were supported by cyclical shares on hopes of a quicker economic recovery.

Reuters | Washington DC | Updated: 25-02-2021 11:58 IST | Created: 24-02-2021 21:28 IST
US STOCKS-Nasdaq declines as tech sell-off resumes; cyclical stocks rise
Representative image Image Credit: Wikimedia Commons

The Nasdaq index fell in choppy trading on Wednesday as investors continued to sell technology-related stocks, while the S&P 500 and the Dow Jones were supported by cyclical shares on hopes of a quicker economic recovery. Microsoft Corp, Alphabet Inc, Amazon.com Inc and Apple Inc were down between 0.6% and 1.7% after rising in premarket trading.

"You have the normal concern ... investors who want to protect profits on some of these (growth) stocks, and the investors who were looking for a pullback to re-enter," said Rick Meckler, partner at Cherry Lane Investments in New Vernon, New Jersey. "As these two sides participate in the market, you're getting these big swings back and forth, buyers on the dip and sellers when it gets back to higher levels."

Value-oriented stocks have enjoyed a bit of a bounce recently, with the S&P 500 Value index rising for the fourth straight day. The S&P 500 financial sector added 0.9% to hit a record high, while other cyclical sectors including industrials, energy and materials also rose.

Markets were reassured earlier by comments from Federal Reserve Chair Jerome Powell, who on Tuesday pushed back on suggestions that loose monetary policy risked unleashing inflation. The S&P 500 Growth index, housing most of the high-flying technology-related stocks, fell more than 6% in the last six days on valuation concerns as yields on the U.S. ten-year Treasury notes remained elevated.

Tech stocks are particularly sensitive to rising yields as their value rests heavily on future earnings, which are discounted more deeply when bond returns go up. Tesla Inc gained 0.6% after star investor Cathie Wood's Ark Invest fund bought a further $171 million worth of the company's shares in the wake of a sharp fall in the electric-car maker's stock.

At 10:46 a.m. ET the Dow Jones Industrial Average was up 109.64 points, or 0.35%, at 31,646.99, the S&P 500 was up 2.79 points, or 0.07%, at 3,884.16, and the Nasdaq Composite was down 82.46 points, or 0.61%, at 13,382.74. However, all the three main indexes were tracking strong monthly gains, with the Dow and the S&P 500 set for their best month since November.

Advancing issues outnumbered decliners for a 1.12-to-1 ratio on the NYSE and a 1.38-to-1 ratio on the Nasdaq. The S&P index recorded 64 new 52-week highs and no new low, while the Nasdaq recorded 140 new highs and 2 new lows.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)


TRENDING

OPINION / BLOG / INTERVIEW

East African women traders: 'Celebrating the past, planning for the future'

COVID-19 has hit women disproportionately hard across East Africa, especially those working in the informal sector. Lessons must be learnt to prevent this from happening again....

Viral variants and vaccine nationalism pose two-pronged threat to Covid victory

... ...

Tracking Fintech during COVID-19: Harnessing power of technology

Its abundantly clear now that as fintech cements its place in the financial sector, accelerated further by the COVID-19 pandemic, it could open the sector to new possibilities by harnessing the power of technology to deliver financial ...

Tectonic turns: How technology shaped healthcare over the decades

Tracing an episodic evolution, with technology at the interface of human and his health....

Videos

Latest News

Flight reschedules, cancellations galore as UAE India travel ban nears implementation

The UAEs decision to ban flights from India due to the worsening COVID-19 situation in the country has upset a lot of travel plans as people are making frantic efforts to reach to their destinations before the restrictions come into effect....

U.S. to double public climate finance to developing countries by 2024

The United States said on Thursday it would boost public climate finance to help poor countries reduce greenhouse gas emissions and adapt to a changing climate, doubling funding by 2024 from high average levels hit during the Obama administ...

Indonesian leader orders all-out effort to find submarine as oxygen runs low

Indonesias president ordered an all-out effort to find a missing submarine in a race against time to save the 53 crew, whose oxygen supply defence chiefs said would last only until Saturday.Indonesia sent a helicopter and five ships to sear...

Intel PC chip sales rise, but profit forecast falls short on manufacturing costs

Intel Corp on Thursday raised its annual sales outlook on booming demand for personal computers, but its second-quarter profit forecast fell short of analyst expectations as the company spends heavily to get its manufacturing operations bac...

Give Feedback