NEW YORK: A sharp decline in technology stocks pulled both the Nasdaq and the S&P 500 indexes into the red on Thursday, while the Dow managed to notch a record closing high with a lift from bank and energy shares.
Declines in Facebook
While the S&P 500 has gained more than 2 percent since the November election on hopes that President-elect Donald Trump's policies will trigger inflation and hasten a rise in interest rates, technology stocks have failed to participate, dropping nearly 3 percent.
"In a higher rate environment you are going to want to pay less for growth further out. To a large extent that is probably what is happening in the higher (price-to-earnings) stocks," said Kim Forrest, senior equity research analyst at Fort Pitt Capital Group in Pittsburgh.
"Everybody is getting tarred and feathered."
The Dow advanced as gains in high-priced names in the financial and energy sectors climbed. Goldman Sachs
The Dow Jones industrial average rose 68.35 points, or 0.36 percent, to 19,191.93, the S&P 500 lost 7.73 points, or 0.35 percent, to 2,191.08 and the Nasdaq Composite dropped 72.57 points, or 1.36 percent, to 5,251.11.
A continued rally in oil helped energy names such as Chevron
The S&P 500 energy index <.SPNY> rose 0.3 percent, while the S&P financial index <.SPSY> climbed 1.7 percent, its best day in three weeks.
Investors are turning now to Friday's U.S. payrolls report for confirmation the economy continues to strengthen, with an eye on an expected hike in benchmark U.S. interest rates by the Federal Reserve at its meeting on Dec. 13-14.
Traders have priced in a 91 percent chance of a rate increase in December, according to Thomson Reuters data.
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Declining issues outnumbered advancing ones on the NYSE by a 1.66-to-1 ratio; on Nasdaq, a 1.61-to-1 ratio favored decliners.
The S&P 500 posted 79 new 52-week highs and seven new lows; the Nasdaq Composite recorded 178 new highs and 63 new lows.
About 9.13 billion shares changed hands in U.S. exchanges, above the 7.96 billion daily average over the last 20 sessions.- Reuters
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