Google Fuels Nasdaq Composite Index Surge as Cyclical Sectors Lag
U.S. equities traded with a mixed tone as gains in mega-cap tech stocks which pushed Nasdaq 1% higher clashed with weakness across cyclical
Quick overview
- U.S. equities showed mixed performance, with the Nasdaq rising 1% due to gains in mega-cap tech stocks like Google and Apple.
- Despite the tech rally, cyclical sectors and consumer names faced weakness, highlighted by DollarTree's 8% decline.
- The S&P 500 saw a modest gain, indicating cautious optimism, while the Dow lagged due to pressure from industrials and financials.
- The latest JOLTS report indicated a cooling labor market, contributing to a wave of U.S. dollar selling and supporting equities.
U.S. equities traded with a mixed tone as gains in mega-cap tech stocks which pushed Nasdaq 1% higher clashed with weakness across cyclical sectors and consumer names.
Tech Boost
Shares of Google (+8%) and Apple (+3.5%) surged after a favorable antitrust court ruling, giving the broader market a lift. The tech-heavy Nasdaq pushed toward record highs near 21,500 after rebounding off the 50 daily SMA (yellow) yesterday, underscoring strong investor appetite for growth names. The trend remains storngly bullish for NAS100 as mas keep pushing the lows higher.
Sector Weakness
Despite the tech rally, energy, financials, transportation, and industrials all came under pressure. On the consumer side, DollarTree slid 8%, while McDonald’s flagged ongoing challenges for lower-income households.
Nasdaq Chart Daily – MAs COntinue to Hold As Support
Sentiment Split
The S&P 500 posted a modest gain, suggesting cautious optimism, while the Dow lagged as cyclical names dragged. The divergence highlights investors’ preference for growth sectors amid persistent economic headwinds.
Closing Levels for Main US Stock Indices
Dow Jones Industrial Average
- Closed at 45,271.23 points, down 24.58 points or -0.05%.
- The minor decline reflected weakness in industrials and financials, keeping the blue-chip index under slight pressure.
Nasdaq Composite
- Ended the day at 21,497.73 points, gaining 218.10 points or +1.02%.
- Tech stocks, particularly in the semiconductor and AI segments, drove strong upward momentum, reinforcing the Nasdaq’s role as a growth leader.
S&P 500
- Finished at 6,448.26 points, higher by 32.72 points or +0.51%.
- Broad-based buying in technology and consumer discretionary sectors helped offset softness in energy and financials.
Labor Market Shift
The latest JOLTS report revealed that for the first time since the pandemic, job openings fell below the number of unemployed Americans. This sign of a cooling labor market triggered a wave of U.S. dollar selling, fueling risk appetite and lending support to equities.
Outlook: With yields easing from recent highs and the September jobs report due Friday, markets may remain cautious. Weak seasonals could add pressure, but for now, tech optimism continues to offset broader market concerns.
Nasdaq Live Chart
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