© Reuters. File photo: Traders work on the trading floor of the New York Stock Exchange (NYSE) in Manhattan, New York City, USA on December 28, 2021. REUTERS/Andrew Kelly
NEW YORK (Reuters)-As financial and industrial stocks rose while the Nasdaq index fell, it set a new closing high for the second consecutive trading day on Tuesday.
The index is almost flat, and the stock prices of large growth companies including Tesla (NASDAQ:) Inc have fallen, making the index and.
Energy, financial and industrial stocks led the S&P 500 index. The World Health Organization cited more and more evidence that the new coronavirus variants cause milder symptoms than previous variants, which helps boost market sentiment.
The S&P 500 Bank Index also rose sharply.
Some strategists said that as investors prepare to raise interest rates before the middle of the year to curb high inflation, financial stocks and other value-oriented stocks may lead the market in the short term. U.S. Treasury yields rose for the second consecutive trading day.
Robert Phipps, director of Per Stirling Capital Management in Austin, Texas, said investors “will punish high-value growth stocks.”
“This is a time when defensive stocks and value stocks may outperform the broader market.”
The S&P 500 Value Index rose, while the S&P 500 Growth Index fell.
Preliminary data showed that the S&P 500 index fell 3.17 points or 0.07% to close at 4,793.39 points, while the Nasdaq Composite Index fell 209.55 points or 1.33% to 15,623.25. The Dow Jones Industrial Average rose 213.47 points, or 0.58%, to 36,798.53.
Tesla’s stock price fell after a day after it rose more than 13% due to stronger-than-expected quarterly deliveries.
The U.S. central bank said last month that it would end its bond purchases during the pandemic in 2022, suggesting that it will raise interest rates at least three times this year. The minutes of the meeting are expected to be released on Wednesday.
Ford Motor (NYSE:) Co shares rose after the automaker said that the annual production capacity of its popular F-150 Lightning electric pickup truck will double to 150,000 units.
Earlier, US December manufacturing data showed a cooling in demand for goods, but investors were comforted by signs of easing supply constraints.
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