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US: Dow winning streak ends, dragged down by financials

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[NEW YORK] Sinking financial stocks helped drag the Dow Jones Industrial Average lower Wednesday, breaking a seven-day winning streak, while the tech-heavy Nasdaq posted strong gains.

The blue-chip Dow slipped 0.3 per cent to 18,868.14, after four straight record closes, and the S&P fell 0.2 per cent to 2,176.94. The Nasdaq closed strong with a 0.4 per cent gain, rising to 5,294.58.

The trading session followed the release of disappointing US economic data which showed wholesale inflation and industrial production flat for the month of October.

US stocks had jubilantly greeted President-elect Donald Trump's victory last week in the race for the White House, rallying for seven straight days. However, Wednesday's result could be a sign of a fading post-Trump rally.

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Financials were among the heaviest losers of the day. JP Morgan Chase dropped 2.5 per cent, Goldman Sachs fell 2.3 per cent and Morgan Stanley finished 2 per cent lower.

Having suffered in the immediate aftermath of the election, tech stocks continued to rise on Wednesday. Apple gained 2.7 per cent, Microsoft rose 1.3 per cent and Google parent Alphabet edged 0.6 per cent higher.

Michael James of Wedbush Securities told AFP the Dow was dragged lower as investors rotated out of some of the stocks that comprise the index.

"The bank index is down nearly one and a half per cent," he said.

"At the same time you are seeing some rotation back into some of the technology stocks that have been hit as hard as they were."

AFP

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