The US stock market gained a dubious distinction on Wednesday, with the Dow Jones Industrial Average ending up high, while the Nasdaq Composite remained stuck in correction territory after falling in more than 10% of its record in recent weeks.
The Dow DJIA,
it also reached a major milestone of round number above 32,000 for the first time.
The Dow has not hit a record, while the Nasdaq Composite has been in correction territory since the boom and dot com crashes on August 23, 1999, according to Dow Jones Market Data.
The Nasdaq Composite COMP,
officially went into correction on Monday, when the index fell 10.54% from its record high on February 12, and many market technicians consider an asset to be in correction until it reaches a new high. Dow Jones considers an asset to be out of correction when it rises at least 10% from its low correction point.
The rally at the Dow was driven by industrial Boeing Co. BA,
drugstore chain Walgreens Boots Alliance Inc. WBA,
and the Home Depot HD building materials network,
who have benefited from the so-called reopening of trade, as investors shift the focus from technology companies that performed well during the pandemic to those that may perform better as the economy recovers further.
Nasdaq has been under pressure since its record in mid-February, with the rotation of technology stocks and growth accelerating with rising bond yields due to fears of inflation and rapid economic growth in 2021, following Congressional approval of a $ 1.9 trillion fiscal stimulus charge.
On Wednesday, Congress finalized approval of the sixth coronavirus relief bill and sent it to President Biden for his signature, with Democrats including an expansive round of payments to families, businesses and local governments without any party support. republican.
The approval of the bill helped give fresh impetus to inventories on Wednesday. The DJIA of the Dow Jones Industrial Average,
rose 1.46% to 32,297, exceeding its previous record closing of 31,961.86 reached at the end of February. The Nasdaq Composite COMP,
fell 0.04% to 13,068.83.
Stock market experts expect a greater turnover of the Nasdaq Wall Street pandemic winners for financial services and energy stocks.