The Dow rebounded due to cyclical gains; NVIDIA led the decline in technology stocks Reuters

© Reuters. Traders work on the trading floor of the New York Stock Exchange (NYSE) in New York City on November 29, 2021. REUTERS/Brendan McDermid

Authors: Devik Jain and Shreyashi Sanyal

(Reuters)-The Dow Jones Industrial Average rose more than 1% on Monday, as economy-related banking and energy stocks rebounded after falling sharply in the previous week, while technology stocks dragged down chip manufacturing due to Nvidia (NASDAQ:) It is difficult to keep up with business.

Goldman Sachs (NYSE:), 3M Co, Boeing (NYSE:) Co and other blue chip stocks Chevron Corp (NYSE:) both rose more than 1%, pushing higher.

All 11 major sectors rose, and the financial, industrial, energy and materials sectors all rose more than 1%.

Robert Pavlik, senior portfolio manager at Dakota Wealth Management, said: “Investors are using this opportunity to intervene in their familiar names, such as large-cap blue chip stocks, and they are testing the market.”

“If the strength of today’s blue chip stocks can be maintained, it may allow other markets to have the ability to begin to feel some confidence.”

The S&P 500 technology stock index fell 0.1%, dragged down by a 5.4% drop in Goofy stocks NVIDIA Corporation .

Peers Qualcomm (NASDAQ:) Inc and Advanced Micro Devices (NASDAQ:) Inc also fell, while the Philadelphia SE Index fell 1.5%.

Tesla (NASDAQ:) Inc fell 3.1%, dragging down the Nasdaq Index after Reuters reported that the US Securities and Exchange Commission has launched an investigation into the electric car manufacturer’s allegations of whistleblowers of solar panel defects.

As investors digested Omicron’s news and Fed Chairman Jerome Powell’s tough comments on accelerating shrinking in response to soaring inflation, Wall Street’s major stock indexes fluctuated sharply last week.

Powell’s remarks also triggered bets on an early interest rate hike next year. Market participants are turning to growth stocks dominated by technology stocks, to cyclical and so-called value stocks, and they are expected to perform better in an environment of tightening monetary policy. good.

The Russell 1000 value index has risen nearly 1.6% so far in December, outperforming the growth index that has fallen more than 3%.

At 10:17 am Eastern Time, the Dow Jones Industrial Average rose 575.78 points, or 1.67%, to 35,155.86, and the S&P 500 index rose 45.84 points, or 1.01%, to 4,584.27, and rose 65.64%, or 65.64%, to 15,151.10.

After the mixed employment report released last week, the focus will now be on the consumer price index and core inflation data released on Friday to find clues about the trajectory of the Fed’s December meeting.

Kohl’s Corp (NYSE:) rose 7.6% after the hedge fund Engine Capital LP said it was pushing the department store chain to consider selling the company or splitting its e-commerce division to improve its lagging share price.

On the New York Stock Exchange and Nasdaq, the ratios of rising stocks to falling stocks are 2.49 to 1 and 1.23 to 1.

The Standard & Poor’s Index hit 17 new 52-week highs and 1 new low, while the Nasdaq Index hit 14 new highs and 512 new lows.

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