Stocks fell Wednesday, but the market was supported by big tech stocks.
The S&P 500 fell 0.2%, while the tech-heavy Nasdaq rose 0.6%. Big tech stocks, which have done well this week, have a large market-cap weighting in the S&P 500. During moments when the Nasdaq’s gain falls closer to flat, the S&P 500 sinks about 0.7%.
The 10-Year Treasury yield slipped to 0.78% from 0.91% Wednesday, as bullishness on the economic recovery may have been overdone.
The market is awaiting the Federal Reserve’s comments on the economy and interest rates this afternoon. Investors want to see evidence the central bank will be keeping interest rates near 0%.
Most sectors, especially cyclical ones, were falling hard, while investors piled into shares of big tech, which they like to do to avoid economic turbulence.
Consumer Discretionary fell about 2%. Oil stocks fell about 2.8%. Banks fell about 3%. These stocks had been on an impressive run in the past few months, as investors think the economy will rebound sharply. New virus cases have recently ticked up a bit, potentially stoking some fear. The S&P 500 is down more than 1% in the past two days.
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