The US stock market on Wednesday cut a dubious distinction with the Dow Jones Industrial Average ending at an all-time high, while the Nasdaq Composite remained wrapped in correction territory after falling in recent weeks by more than 10% of the his record.
The Dow DJIA,
it also cleared for the first time a large milestone of round numbers above 32,000.
According to Dow Jones Market Data, the Dow has not reached a record while the Nasdaq Composite has been in correction territory since the time of the boom and the fall of the point-like on August 23, 1999.
The Nasdaq Composite COMP,
it officially entered the correction on Monday, when the index fell 10.54% from the record high on February 12 and many market technicians believe that an asset remains in correction until reaching a new high. The Dow Jones considers that an asset exits the correction when it rises at least 10% from the low correction point.
The concentration on the Dow has been driven by Boeing Co. BA industrial,
pharmacy chain Walgreens Boots Alliance Inc. WBA,
and the Home Depot HD home improvement chain,
who have benefited from so-called reopening trade as investors shifted their focus from technology companies that worked well during the pandemic to those that could perform better as the economy recovers.
The Nasdaq has been under pressure since its record high in mid-February, as technology and growth stocks rose as bond yields rose amid fears of inflation and rapid economic growth in 2021 after of Congress ’approval of a $ 1.9 trillion fiscal stimulus bill.
On Wednesday, Congress finalized the passage of the sixth coronavirus relief bill and sent it to President Biden for signature, with Democrats including an expansive round of payments to households, businesses and local governments without no support from the Republican party.
The passage of the bill helped give new impetus to the actions on Wednesday. The Dow Jones Industrial Average DJIA,
increased by 1.46% to 32,297, surpassing the previous record close of 31,961.86 reached at the end of February. The Nasdaq Composite COMP,
fell 0.04% to 13,068.83.
Equity market experts expect a new rotation of Wall Street pandemic winners on the Nasdaq toward financial services and energy stocks.