Mixed day for US stocks as investors flee tech shares

NEW YORK: The Dow jumped while the Nasdaq slumped Monday as investors continued to bet on a strong recovery in industrial and travel companies and other likely winners of the post-coronavirus economy.

After surging to all-time records during the session, the Dow Jones Industrial Average pulled back somewhat, but still finished up 1.0 percent at 31,802.44.

But the tech-rich Nasdaq Composite Index tumbled 2.4 percent to 12,609.16, while the broad-based S&P 500 declined 0.5 percent to 3,821.35.

"Investors are still rotating out of tech and into economically sensitive cyclicals," said Art Hogan, chief market strategist at National Securities, adding that Monday's session was like a "microcosm" of last week's trading action.

Factors boosting stocks include progress on President Joe Biden's $1.9 trillion stimulus package and increasing momentum behind coronavirus vaccines.

Those hopeful indicators have been countered by worries over rising inflation and the prospect of a dramatic shift in Federal Reserve monetary policy.

The Dow was led by Disney, which surged 6.3 percent on expectations it will prosper from a recovery in its parks business and from the return to cinemas. Other blue-chip companies gaining included Goldman Sachs, 3M and Home Depot.

Among individual companies, GameStop was back on the rise, surging 41.2 percent after announcing the formation of a strategic planning committee and steps to boost its e-commerce business.

GameStop has experienced extreme volatility in recent weeks following a surge in buying interest from retail investors who supported the stock on the Reddit website.

American Airlines rose 5.0 percent as it announced plans to raise $7.5 billion backed by its frequent flier program.

Other travel companies also had a good session, including Marriott International, which rose 2.4 percent and Royal Caribbean, which gained 1.6 percent.