• The Star Staff

S&P 500, Nasdaq fall as high-flying tech stocks slide

The main processor for U.S. stock trades said on Wednesday it supports an effort to shorten the settlement cycle for securities to help reduce market risk, an area that has been under scrutiny in the wake of the GameStop Corp trading frenzy.


The time it takes to settle a stock trade, or when then buyer must make the payment and the seller must deliver the security, is currently two days after the transaction happens.But concern remained over the pace of vaccination, its efficacy against new variants of the novel coronavirus and the damage being done to economies, including the impact on the dollar of a $1.9 trillion stimulus package.


“We’ve come a long way in a short time,” said Josh Wein, portfolio manager with Hennessy Funds. “It won’t take a lot for the market to pause ... whether it’s deliberations over fiscal stimulus, or the occasional talk of inflation or interest rates getting some lift.”Tesla Inc was the only major technology stock trading higher.


At 11:53 a.m. ET the Dow Jones Industrial Average rose 481.33 points, or 1.59%, to 30,872.93, the S&P 500 gained 41.22 points, or 1.11%, to 3,768.08, and the Nasdaq Composite gained 37.89 points, or 0.29%, to 12,856.85.


The small-cap Russell 2000 index jumped 2.5% to a record high.


Hopes of a vaccine-powered economic recovery in 2021 pushed Wall Street’s main indexes to record highs in late-December, with sectors that had previously lagged, including banks, industrials and energy, fuelling the rally.


Invesco Solar ETF gained about 10.6% on expectations that clean energy companies will benefit under a Democrat-controlled Congress, while bets on decriminalizing marijuana at the federal level lifted ETFMG Alternative Harvest ETF up 9.3%.


AmerisourceBergen Corp gained 7.3% after the U.S. drug wholesaler said it would buy Walgreens Boots Alliance’s drug distribution business for $6.5 billion to expand in Europe. Dow component Walgreens rose 4%.


Advancing issues outnumbered decliners for a 2-to-1 ratio on the NYSE and a 2.5-to-1 ratio on the Nasdaq.


The S&P 500 posted 75 new 52-week highs and no new low, while the Nasdaq recorded 370 new highs and 13 new lows.


Bitcoin soared above $50,000 to an all-time high, adding steam to a rally fueled by signs that the world’s biggest cryptocurrency is gaining acceptance among mainstream investors and companies.


That super-easy stance, coupled with the Biden administration’s proposed $1.9 trillion spending bill for pandemic relief, has left some investors fretting over a coming surge in inflation.


The MSCI’s global stock index was down 0.42% at 682.18. The index touched a record intra-day high of 687.26 on Tuesday, before erasing gains to snap an 11-day winning streak.

Recent Posts

See All

Subscribe to Our Newsletter

© The San Juan Daily Star