S&P 500 and Dow Rise to New Heights as Tech Stocks Plummet

The S&P 500 index and the Dow Jones industrial stocks reached new highs for the second day this week. This happened after big name companies garnered gains on Wall Street on Tuesday.

stocks chart and graph

Nasdaq was down after technology stocks fell, along with small company stocks.

The S&P 500 index rose 4.12 points or 0.2 percent to 2,664.11. The Dow climbed 0.5 percent or 118.77 points to 24,504.80.

So far this quarter, shares of financial stocks in the S&P 500 rose 8.9 percent. It’s the best performing sector out of the 11 major categories of the index. The yield on the standard 10-year US Treasury bond increased 2.403 percent from 2.387 percent on Monday.

Goldman Sachs Group contributed 3 percent, providing one of the biggest contributions to the Dow’s point gain. JPMorgan Chase & Co. climbed 1.2 percent.

Shares of Comcast rose 2.8 percent. 21st Century Fox shares were up 1.3 percent while Disney gained 0.6 percent.

Telecommunications firms were pushed higher by a mix of corporate news. Gains from telecom and financial stocks were enough to help both the Dow and S&P 500 to overcome the declines caused by the technology and energy companies.

Nasdaq on the other hand fell 12.76 points or 0.2 percent to 6,862.32. The Russell 2000 index of smaller company stocks declined 0.2 percent as well or 3.72 points to 1,516.12. There have been more stocks falling than rising on the New York Stock Exchange.

“It’s another day, another all-time high,” said chief investment strategist Brian Nick.

Fed Rate Hikes

The gainers were led by banks and other financial stocks, due to the Federal Reserve meeting for the discussion of interest rates. It is highly expected for the Fed to raise interest rates for the third time this year. Such an event will allow banks to increase charges as they lend money.

“It’s mostly optimism on taxes being close to the finish line and stronger global economic data,” stated head of trading RJ Grant.

While senior portfolio manager Eric Wiegand said, “”Everything right now comes down to policy. We’ll be watching what [Fed Chairwoman Janet] Yellen might say at her last press conference and any insights going forward. The other fixation in Washington is on the tax bill.”

Wiegand then added that he and other investors are “looking for any signs of negotiations advancing.”

Technology stocks went through the most decrease. Energy stocks fell together with crude oil prices. Bitcoin fell during its second day of trading.

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