Stocks were falling Monday, but the losses eased by midday as solid performance in big tech stocks blunted the negative action on the S&P 500.
By just before 12:30 EDT, the Nasdaq was up 0.27%, while the S&P 500 was down 0.2%. In the morning, all three major U.S. indices were down, with the S&P 500 down as much as 0.66%. By midday, the Dow Jones Industrial Average, home to mostly non-tech stocks, or those that represent what some call the “old economy,” was down 0.74%. The 10-Year Treasury yield fell to 0.67%. Yields fall when prices rise.
The NYSE FANG index, which has an outsized market cap weighting in the S&P 500, rose 0.8%, as investors favor growth tech that can power through economic turbulence.
In the past week, the S&P 500 is up more than 5%, a move that included strong performance from cyclical value stocks. Hopes for more fiscal stimulus are running high. The White House and House of Representatives are both in support of more spending and the small business paycheck protection program’s extension was passed by the House recently. Monetary stimulus and low interest rates may soon have a waning marginal impact on the economy and market.
Cyclical sectors like large caps in energy, banking and consumer discretionary were all down more than 1%. S&P 500 industrials were down about 0.9%.
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