Breaking News
0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Dow ends at record high, Nasdaq falls as tech slides

Stock MarketsMay 05, 2021 07:25PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. FILE PHOTO: The front facade of the New York Stock Exchange (NYSE) is seen in New York City, U.S., May 4, 2021. REUTERS/Brendan McDermid

By Krystal Hu and Shreyashi Sanyal

(Reuters) - The Dow Jones Industrial Average ended at a record high on Wednesday, driven higher by energy and other economically sensitive sectors, while the Nasdaq closed in red as megacap growth stocks slipped.

Strong gains by Goldman Sachs (NYSE:GS), Caterpillar (NYSE:CAT) and Chevron (NYSE:CVX) sent Dow to the record. Energy and materials continued this week's momentum, leading gains among S&P 500 sectors. Defensive utilities and real estate led sectoral declines.

"Energy, financial, materials, industrials are all outperforming. They tend to be cyclically oriented sectors and tend to benefit during periods when the economies are reopening and expanding," said Terry Sandven, chief equity strategist at U.S. Bank Wealth Management.

Strong economic data and earnings pushed the S&P 500 and Nasdaq indexes to record high last week, but markets have wobbled amid concerns about rising inflation and potentially higher U.S. interest rates.

"Once you have markets hitting the highs we have seen recently, the one thing investors are worried about is rising inflation and what that means for profitability of companies," said Shawn Cruz, senior market strategist at TD Ameritrade.

The Dow closed at 34,230.34, up by 0.29%, while the S&P 500 gained 2.93 points, or 0.07%, to 4,167.59.

The Nasdaq Composite gave up its earlier gains and ended 51.08 points, or 0.37%, lower at 13,582.43.

Megacap technology companies including Amazon.com Inc (NASDAQ:AMZN) and Facebook Inc (NASDAQ:FB) and Alphabet (NASDAQ:GOOGL) Inc were down over 1%. The Philadelphia SE Semiconductor index recovered from a sell-off on Tuesday by rising 0.61%.

Investors sold off tech on Tuesday after Treasury Secretary Janet Yellen suggested that interest rates might need to rise in an overheating economy.

She later clarified that a near-term interest rate hike was not something she was "predicting or recommending" on Tuesday evening.

The ADP National Employment Report showed U.S. private payrolls increased in April as companies rushed to boost production amid a surge in demand, powered by massive government aid and rising vaccinations against COVID-19.

A more comprehensive reading in the form of the Labor Department's non-farm payrolls data is due on Friday.

The largest percentage gainer on the S&P 500 was Caesars (NASDAQ:CZR) Entertainment Inc , which rose 7.8% after the casino operator said it expected to benefit from the economy reopening.

On the Nasdaq 100, the largest gainer was T-Mobile US (NASDAQ:TMUS) Inc, which rose 4.4% after it raised full-year postpaid subscriber net additions forecast..

Peloton Interactive (NASDAQ:PTON) Inc plunged by 14.6%, hitting an eight-month low on its announcement to recall its treadmills amid reports of multiple injuries and the death of a child in an accident.

Uber Technologies (NYSE:UBER) Inc's shares fell over 4% during afterhours trading after reporting a narrower first quarter loss amid strong growth in its food-delivery business, while ride-hailing bookings were flat.

Volume on U.S. exchanges was 8.35 billion shares, compared with the 9.94 billion average for the full session over the last 20 trading days.

Dow ends at record high, Nasdaq falls as tech slides
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (1)
Mart Bab
Rubberduck1973 May 05, 2021 9:20AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
By the way, buy the rumor and sell the news. Just a reminder. Also, sell in may and go away. Come back in September
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email