Losses in technology stocks dragged down the Nasdaq and the S&P 500 on Thursday, while gains in bank and energy shares propped up the Dow. Declines in Facebook, Microsoft and Apple pushed the Nasdaq near a two-week low, while setting the S&P 500 technology index for its worst day since August. While Wall Street has rallied since the November election on hopes that President-elect Donald Trump's policies would be market friendly, technology stocks have barely budged, posting a mere 0.6 percent gain.
"I think what you are seeing is people moving out of names that have been winners in the past couple of years and from companies that have predictable growth such as Facebook, Alphabet and Apple," said Michael Scanlon, managing director of Manulife Asset Management. Facebook fell 3.2 percent to $114.73 after Canaccord Genuity cut its price target on the stock, while Microsoft, Apple and Alphabet fell between 1.5 percent and 2.2 percent.
However, the Dow moved higher, powered by a more than 5 percent rise in oil prices and gains in bank stocks. The S&P 500 energy index rose 2 percent, with shares of Exxon and Chevron leading the pack. Investors are now turning their attention to economic data to assess whether the Federal Reserve could raise interest rates at its meeting on December 13-14.
At 12:19 pm ET the Dow Jones Industrial Average was up 73.73 points, or 0.39 percent, at 19,197.31. The S&P 500 was down 2.52 points, or 0.11 percent, at 2,196.29 and the Nasdaq Composite was down 54.84 points, or 1.03 percent, at 5,268.84. Six of the 11 major S&P sectors were trading lower, with bond proxies such as utilities and real estate among the big losers.
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