Dow Adds More Than 350 Points, but Nasdaq Closes Lower as Investors Rotate Out of Tech
The Dow Jones Industrial Average climbed Monday, outperforming the market, while the Nasdaq Composite slipped as traders continued to sell off major tech stocks that have powered the bull market.
The 30-stock Dow rose 358.67 points, or 0.86%, to close at 42,297.12 as investors rotated into non-tech shares like Caterpillar, JPMorgan and UnitedHealth. Meanwhile, the tech-heavy Nasdaq dropped 0.38% to 19,088.10. The S&P 500 inched up 0.16%, ending at 5,836.22. All three benchmarks are down for the last two weeks, with tech shares causing most of the damage.
Palantir and Nvidia, two of the bull market leaders popular with retail investors, shed more than 3% and nearly 2%, respectively — building upon their losses from last week. Nvidia fell almost 6% during the period, while Palantir lost more than 15%. Other popular tech shares including Apple and Micron were also down in the session.
While tech shares pulled back, the energy sector beat the broader market to add more than 2% as oil prices rose. Health care and materials also advanced.
Surging bond yields have been one of the catalysts for the sell-off in growth-oriented shares. The 10-year Treasury yield on Monday touched the highest level since November 2023, ending the day at 4.79%. Yields surged on Friday following a stronger-than-expected jobs report that cast doubt on further rate cuts by the Federal Reserve.
Source : CNBC
