US: Nasdaq ends at record on resurgence of tech shares; Dow falls

[NEW YORK] The Nasdaq and S&P 500 each finished at records on Monday on the continued resurgence of technology shares, while weakness in financial and industrial equities left the Dow lower.

The tech-rich Nasdaq Composite Index led the market, winning 1.0 per cent to close the session at 14,500.51, easily topping its prior record.

The broad-based S&P 500 gained 0.2 per cent to end at 4,290.61, its third straight all-time high, but the Dow Jones Industrial Average dropped 0.4 per cent to 34,283.27.

"Technology has come back into vogue," Art Hogan, chief strategist at National Securities, said of the Nasdaq's recent strength after the tech industry underperformed the broader market early in 2021.

Meanwhile, the yield on the 10-year US Treasury note fell once again, suggesting the market's diminishing worry over inflation.

Large technology shares rose, led by Facebook, which jumped 4.2 per cent causing its market capitalisation topped US$1 trillion after a US court dismissed a federal agency's antitrust complaint against the social media giant.

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Apple, Amazon and Netflix all gained more than one per cent.

Boeing was the biggest loser in the Dow, slumping 3.4 per cent after US air safety regulators formally pushed back the timeframe for approving its 777X jet.

The Federal Aviation Administration told Boeing the jet is "not yet ready" to advance to the next stage of evaluation, according to a letter to the company reviewed on Monday by AFP.

Boeing customers such as American Airlines and United Airlines also had a bad day, along with other travel-related companies such as Marriott International, Expedia and Carnival. All lost more than two percent.

In addition to worries about the Delta variant of the coronavirus, which could limit travel just as it was starting to return to normal, the pullback also reflects profit-taking in a sector that had seen big gains earlier in 2021.

AFP