Dow closes more than 250 points higher, but Nasdaq slides as investors rotate out of tech stocks
The Dow Jones Industrial Average rose on Tuesday, building on its sharp gains from the previous session as a market rotation out of names that thrived during the pandemic and into stocks linked to an economic recovery continued.
The 30-stock average jumped 262.95 points, or 0.9%, to close at 29,420.92. However, the S&P 500 and Nasdaq Composite struggled amid a sharp decline in major tech names.
The S&P 500 closed 0.1% lower at 3,545.53 and the Nasdaq slid 1.4% to 11,553.86.
“This is a market in which a rotation is likely to continue into the end of the year,” said Terry Sandven, chief equity strategist at U.S. Bank Wealth Management. “Technology, consumer discretionary and communication services remain our favorite sectors for the long term ... but I think near term, with signs of economic improvement on the horizon, we’re going to see cyclical companies outperform.”
Reference: CNBC
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