The US stock market made a dubious distinction on Wednesday from the Dow Jones Industrial Average which ended at an all-time high, while the Nasdaq Composite stalled in correction territory after falling more than 10% from its record high in recent weeks.
The Dow DJIA,
also managed to reach a milestone with a grand round of more than 32,000 for the first time.
According to Dow Jones Market Data, the Dow has not hit an all-time high while the Nasdaq Composite has been in correction territory since around the time of the dot-com boom and bust on Aug. 23, 1999.
The Nasdaq Composite COMP,
officially went into correction on Monday, as the index fell 10.54% from its all-time high on Feb. 12, and many market technicians believe an asset will remain in correction until it hits a new high. Dow Jones considers an asset out of correction when it is up at least 10% from its correction low.
The rally in the Dow was powered by industries Boeing Co. BA,
drugstore chain Walgreens Boots Alliance Inc. WBA,
and home improvement chain Home Depot HD,
that have benefited from the so-called trading reopening as investors shift their focus from technology companies that did well during the pandemic to those that may perform better as the economy continues to recover.
The Nasdaq has been under pressure since its all-time high in mid-February, as technology and growth stocks sped up, while bond yields soared amid fears of inflation and rapid economic growth in 2021 following Congressional approval of a $ fiscal stimulus. 1.9 Trillion Bill.
On Wednesday, Congress finalized the passage of the sixth bill for coronavirus relief and sent it to President Biden for signature, with Democrats covering a comprehensive set of payments to households, businesses and local governments without any support from the Republican Party.
The bill’s approval on Wednesday helped boost stocks one more time. The Dow Jones Industrial Average DJIA,
rose 1.46% to 32,297, surpassing the previous record of 31,961.86 at the end of February. The Nasdaq Composite COMP,
decreased 0.04% to 13,068.83.
Stock market experts expect a further rotation of Wall Street’s pandemic winners in the Nasdaq to financial services and energy stocks.