NEW YORK – Strong gains by banking and industrial equities propelled the Dow to a fresh record on Thursday (Dec 1), but an acceleration of the tech sell-off pushed the Nasdaq sharply lower.
The Dow Jones Industrial Average rose 68.35 points (0.36 per cent) to 19,191.93, up almost 40 points above than the previous record set Nov 25.
But the Nasdaq dropped 72.57 points (1.36 per cent) to 5,251.11, and the broad-based S&P 500 shed 7.73 points (0.35 per cent) to 2,191.08.
The Dow was led by banking giant JPMorgan Chase and Goldman Sachs, which rose 2.0 per cent and 3.4 per cent, respectively. Industrial companies General Electric and Boeing gained 2.1 per cent and 1.2 per cent.
But the technology sell-off accelerated, with Facebook slumping 2.8 per cent, Intel 2.7 per cent and Tesla Motors 4.0 per cent.
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.
Ford gained 3.9 per cent after reporting that November US auto sales increased 5 per cent to 197,574. GM, which reported a 10.2 per cent gain in sales to 252,644, advanced 5.5 per cent.
Dollar General slumped 5 per cent after reporting that third-quarter net income fell 4.4 per cent to US$235.3 million. It described the shopping environment as challenging and said price deflation crimped sales.
United Technologies fell 0.2 per cent after its Carrier air-conditioning unit struck a deal with Trump to keep about 1,000 jobs in Indiana in exchange for US$7 million in tax incentives offered by the state of Indiana.