U.S. Indices Took Different Directions On Wednesday, Sector Rotation Reversed

Wall Street ended Wednesday in dispersed order on the eve of Thanksgiving, a public holiday for the U.S. stock market. The Dow Jones and the S&P 500 dropped from their previous day’s highs, below than 30,000 points for the DJIA but the Nasdaq rose setting a new record. Investors, who have welcomed the possibility of a return to normality with anti-Covid vaccinations in 2021 in recent weeks, have taken back some concerns with regard to the current mixed economic figures in the United States. As a result, unemployment insurance claims increased for the second week in a row, signaling a downturn in the economic recovery.

The Dow Jones gave up -0.58 percent to 29,872 points at the close, returning below the 30,000 points crossed the day before for the first time in its history, while the large S&P 500 index fell -0.16 percent to 3,629 points, following its Tuesday high. Rich in technology and biotech inventories, the Nasdaq Composite rose 0.48 percent to 12,094 points, surpassing its last September record of 12,056 points at the close. After posting a fresh all-time high on Tuesday, the Russell 2000, the US small cap index, dropped -0.46 percent to 1,845 points.

The U.S. stock exchange was closed for Thanksgiving on Thursday, and will close earlier on Friday from 1 p.m. EST.

The sector rotation reversed on Wednesday favoring technology stocks once again, which benefit from a pandemic background, the latter accentuating shifts in consumer behavior (remote work, online shopping and leisure, etc.). The cyclical stocks that in recent weeks have generated spectacular catch-ups have been the target of profit-taking.

In recent weeks, the outbreak of coronavirus has led to new travel restriction initiatives in several of U.S. states and cities, including California, New York and Chicago. According to data from Johns Hopkins University, which refers to it, the outbreak has passed the 12.7 million case mark in the world, and the death toll has now reached 261,000.

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