Dow Hits Record High for Economy Stocks; Nasdaq Dips
The Dow Jones Industrial Average reached a record high on May 10 after rising 0,86% or 299.59 points. The S&P 500 was more restrained as shares of technology companies were overshadowed by the rise of commodity, material, and energy stocks, resulting in a drop of 0.39 points or 0.01%.
Overall, the Nasdaq dropped 1.5%, thanks mainly to some top technology companies losing between 1.4% and 4%. Tech giants like Apple, Tesla, Facebook, and Amazon were not in the spotlight this week, making it a great opportunity for newcomers to online stock trading to grab those stocks at a discounted price.
The S&P 500’s materials index (.SPLRCM) reached a record high with steel production, gold, copper, and aluminum peaking. The energy index (.SPNY) is recovering after the cyberattack on the Colonial Pipeline, the US operator whose fuel network supplies almost half of the East Coast.
The most significant gains for the S&P 500 were from the industrial, healthcare, and economy-associated financial sectors. The S&P sectors that suffered the biggest losses were technology, consumer discretionary, and communication services, which includes top-rated tech-related stocks.
As Reuters reports, cybersecurity firm FireEyehad an excellent day, rising 4.8%. Industry sources said that this was thanks to the company taking part in the effort to assist the Colonial Pipeline’s recovery from the disruptive ransomware attack.
According to the latest economic reports, the US economy is recovering at a slower rate than initial forecasts predicted. Rising inflation is having an effect on the retail sector and will most likely set the path for the US stock market.
“Inflation data is pretty important from a market leadership perspective,” said Equity Strategy Head for the US at UBS, Keith Parker. “The number should come in strong and probably contribute to another leg in the reflation value rotation.”
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