U.S. stocks decline amid rotation out of big tech
BNN Bloomberg
U.S. stocks turned lower as investors evaluated the resilience of the global recovery amid a record spike in coronavirus cases.
U.S. stocks turned lower as investors evaluated the resilience of the global recovery amid a record spike in coronavirus cases.
Techs led the S&P 500 lower, following the benchmark’s 69th record close this year on Monday. The Nasdaq 100 dropped amid turnarounds in four-day rallies for the likes of Nvidia Corp., Apple Inc. and Alphabet Inc. The U.S. 10-year Treasury yield dipped while oil advanced to a one-month peak.
Stock trading was choppy as moves were exaggerated by thin volumes, with shares changing hands in the major benchmarks about a third below daily averages for the past 30 days.
A tidal wave of omicron infections took global COVID-19 cases to a daily all-time high on Monday, but investors are taking comfort from studies suggesting omicron, while highly contagious, causes less severe illness. A University of Oxford immunologist said the omicron variant is not “the same disease we were seeing a year ago,” reinforcing reports about the strain’s milder nature.
“What we’re seeing with each of these variants is they’re just not as severe,” said Anderson Lafontant, Miracle Mile Advisors senior advisor on Bloomberg TV. “One area that we like a lot is energy. We’re viewing this as a reopening play.”
Data Tuesday showed the Richmond Fed’s manufacturing survey rose in December, beating estimates, with the prior reading revised higher, while growth in U.S. home prices cooled for a third straight month in October.
