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Dow gained 16 points, but most of the shares in the S&P 500 fell. The shares of the Tesla electric vehicle giant are still on a urinary market.
Stocks were mixed on Wednesday, but did not move much. The market has had a pretty big run and many stocks are taking off.
Dow Jones Industrial Average
rose 16.02 points, or 0.05%, to 33,446.26 after spending much of the day in the red.
S&P 500
added 6.01 points, or 0.15%, to finish at 4,079.95, while
Nasdaq Composite
decreased by 9.54 points, or 0.07%, to 13,688.84. The biggest winner in the S&P 500 was
L marks
(ticker: LB), the father of Victoria’s Secret, which saw the shares increase by 3.7% at an analyst upgrade.
Meanwhile, ultra-rising stocks have been hit.
adze
(TSLA) shares are still on a urine market after setting a record in January; shares of the electric vehicle giant fell 3% on Wednesday. Video conferencing giant shares
Zoom video communications
(ZM), down more than 40% from the all-time high in October, fell another 2%. Rising older interest rates are affecting these stocks, as firms expect most of their long-term profits and their current valuations are vulnerable to higher rates.
However, the actions of more mature companies have had good results.
Apple
(AAPL),
Facebook
(FB) and
Alphabet
(GOOGL) increased by 1.3%, 2.3% and 1.3% respectively.
Nasdaq 100,
an index that includes high-capitalization technology stocks rose 0.28%.
Stocks are priced in a lot of good news, as fiscal incentives and reopening are driving the economy forward. Over the past 30 days, including Wednesday’s performance, the Dow and S&P 500 have risen 5% and more than 6%, respectively. Stock valuations are rich, while interest rates have risen, reducing the attractiveness of stocks relative to bonds. And the rally has raised many sectors – which means that the shares have a certain disadvantage; 86% of S&P 500 shares traded above the 50-day moving average on Tuesday, according to Canaccord Genuity. Wednesday’s weakness was almost as great as market growth; 61% of S&P 500 stocks fell, according to FactSet data.
Everything comes in the absence of any significant developments or changes in the economic outlook. Trillions of dollars of fiscal stimulus are already in circulation. President Joe Biden’s $ 2 trillion infrastructure plan does not contain many positive surprises. The Federal Reserve commented on Tuesday afternoon, but did not reveal anything new. The first quarter earnings season has not yet begun, although investors will focus on baselines and guidance as companies begin to report.
As for the Fed, the actions did not even react to the positive message of the central bank, suggesting that they are far from cheap. The Fed did not suggest higher interest rates soon. “There seems to be no hidden interest in higher rates, which suggests that rates will remain really low until unemployment drops to pre-pandemic levels,” wrote Brad McMillan, investment director of the Commonwealth Financial Network. , in comments sent by e-mail to the press. Even against this background, the shares could not gain much share that day.
“Investors may have a vision of the next catalyst for moving stocks, as the market has shaped quite a bit this week – not a bad thing, because we’re at records,” said Mike Loewengart, director of investment strategy at E * Trade, wrote in an email.
Write to Jacob Sonenshine at [email protected]