Dow ends at fresh record but Nasdaq tumbles 1.4%
NEW YORK (AFP) – Strong gains by banking and industrial equities propelled the Dow to a fresh record Thursday, but an acceleration of the tech sell-off pushed the Nasdaq sharply lower.
The Dow Jones Industrial Average rose 0.4 percent to 19,191.93 almost 40 points above than the previous record set November 25.
But the Nasdaq dropped 1.4 percent to 5,251.11, and the broad-based S&P 500 shed 0.4 percent to 2,191.08.
The Dow was led by banking giant JPMorgan Chase and Goldman Sachs, which rose 2.0 percent and 3.4 percent, respectively. Industrial companies General Electric and Boeing gained 2.1 percent and 1.2 percent.
But the technology sell-off accelerated, with Facebook slumping 2.8 percent, Intel 2.7 percent and Tesla Motors 4.0 percent.
Technology shares have been volatile since the US presidential election, with some analysts fearing protectionist measures by President-elect Donald Trump could harm the industry.
Analysts also consider low or no-dividend stocks to be more vulnerable than blue chip companies to higher interest rates, which can boost the value of bonds. Most technology stocks do not pay dividends.
The yield on the 10-year bond rose sharply on Thursday.