CNBC reported that the technology-based Nasdaq Composite Index has been lagging behind the Dow Jones Industrial Average for four consecutive weeks, the first Time in four years. Dow Jones rose more than 7% this year, but last year’s bright performance of that index only rose 3.35%, highlighting the fact that in investors off the technology stocks, that the leading record of nearly a decade has been broken.
The Dow Jones Industrial Average closed up 293.05 points or 0.9% on the 12th, hitting a record high of 32,778.64 points, up 4.1% in a week; while the Nasdaq index even three weeks after the setback, closed down 78.810 points or 0.9% on the 12th, at 13,319.86 points, despite the weekly rise of 3.09%, still less than the Dow Jones.
The Dow Jones has outperformed the Nasdaq for four consecutive weeks, the longest winning streak since April-May 2016, which was also the first time since 2011 that the Dow Jones outperformed the Nasdaq for a full year.
Stock market experts are happy about this. They’ve been predicting for years that the tech boom would cool off and dissipate, but those predictions have always fallen flat because of the frenzy of investors buying tesla, the massive shift to Cloud Computing, and the growing dominance of mega tech stocks like Apple and Amazon.
But it’s not what it used to be. The 10-year U.S. bond yield rose to 1.642% on the 12th, writing a new high of more than a year.
Meanwhile, the Biden administration has launched a $1.9 trillion Epidemic relief plan and announced that all U.S. adults can receive the new crown vaccine by May 1, indicating that the U.S. economy is expected to rebound sharply in 2021.
The prospect of restarting sightseeing trips and returning to office has benefited traditional oil and gas companies. In the S&P 500, energy stocks have been the best performers this year, up 40 percent since the beginning of the year. The past week’s brightest performers are non-essential consumer stocks, real estate stocks and utilities stocks.
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