Nasdaq, S&P 500 fall with growth shares; banks boost the Dow Jones

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Traders work in the trading floor of the New York Stock Exchange (NYSE) in Manhattan, New York, United States on December 28, 2021. REUTERS / Andrew Kelly

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  • Strong rise in financials
  • Ford increases optimistic production forecast for electric pickup
  • Indices: Dow up 0.7%, S&P down 0.1%, Nasdaq down 1.6%

NEW YORK, Jan. 4 (Reuters) – The Nasdaq (.IXIC) and S&P 500 (.SPX) fell on Tuesday afternoon with stocks of big names in growth, while the Dow Jones Industrial Average (.DJI) rose as bank stocks surged along with US Treasury yields.

The Nasdaq Composite reversed Monday’s strong gains to fall more than 1%, along with declines in shares of Tesla Inc (TSLA.O), Microsoft Corp (MSFT.O) and Apple Inc (AAPL.O).

Tesla fell 4.4%, a day after surging more than 13% on stronger-than-expected quarterly shipments while Apple, which became the first company to briefly hit $ 3 trillion in market capitalization on Monday , fell 1.1%.

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The Dow Jones hit a record intraday high and the S&P Financial Index (.SPSY) was on track to a historic close, led by bank stocks.

The S&P 500 Banking Index (.SPXBK) was up 3.7% and on track for its best day in about a year.

Some strategists have said financials and other value-driven stocks could lead markets in the near term as investors brace for Federal Reserve interest rate hikes by the middle of the market. year to curb high inflation. US Treasury yields rose for a second trading day. Read more

Investors will “punish growth stocks with high valuations,” said Robert Phipps, director of Per Stirling Capital Management in Austin, Texas.

“This is a time when defensive stocks and value stocks are likely to outperform. “

The S&P 500 Stock Index (.IVX) climbed 1.1%, while the S&P 500 Growth Index (.IGX) fell 1.4%.

The Dow Jones Industrial Average (.DJI) rose 258.2 points, or 0.71%, to 36,843.26; the S&P 500 (.SPX) lost 4.74 points, or 0.10%, to 4,791.82; and the Nasdaq Composite (.IXIC) lost 256.34 points, or 1.62%, to 15,576.46.

The US central bank announced last month that it would end its bond purchases during the pandemic in 2022, signaling at least three rate hikes for the year. The minutes of the meeting are expected to be released on Wednesday.

The S&P 500 also hit an intraday all-time high before falling, as the World Health Organization said more evidence emerged that the coronavirus variant was causing milder symptoms than previous variants. Read more

Ford Motor Co (FN) jumped 11.1% after the automaker said it would nearly double the annual production capacity of its burning F-150 Lightning electric pickup to 150,000 vehicles. Read more

Earlier, US manufacturing data for December showed some slowing in demand for goods, but investors took comfort in signs of easing supply constraints. Read more

The advancing issues outnumbered the declines on the NYSE by a ratio of 1.16 to 1; on the Nasdaq, a ratio of 1.54 to 1 favored the declines.

The S&P 500 posted 70 new 52 week highs and a new low; the Nasdaq Composite recorded 98 new highs and 94 new lows.

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Additional reporting by Shreyashi Sanyal and Devik Jain in Bangalore; Editing by Maju Samuel and Richard Chang

Our Standards: Thomson Reuters Trust Principles.


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