- Dow Jones up 250 points as strong financials and utilities stocks boost gains.
- Nasdaq dips slightly, driven by ASML’s reduced sales forecast affecting tech.
- Small-cap Russell 2000 outperforms, nearing its highest level since 2021.
The stock market showed mixed results today as the Dow Jones Industrial Average rose by around 250 points, benefiting from gains in financials and utilities, while the tech-heavy Nasdaq Composite slipped slightly.
Meanwhile, small-cap stocks, represented by the Russell 2000, performed exceptionally well, up over 1.5% and nearing its highest close since November 2021.
Nasdaq Dips as Dow Climbs Amid Earnings Volatility
Despite tech-sector struggles, the Dow Jones Industrial Average experienced strong gains today, rising over 250 points thanks to solid performances in the financial and utilities sectors. Morgan Stanley’s impressive quarterly earnings fueled investor confidence, pushing its stock up by 7%. In contrast, Nasdaq faced pressure from tech stock declines, primarily due to ASML’s reduction in its sales forecast, affecting companies like Nvidia.
The Russell 2000, which tracks smaller companies, saw a notable surge of more than 1.5%, reaching its highest levels in nearly two years. This rise was driven by optimism surrounding the economic outlook for smaller firms, which could benefit from the current low-interest-rate environment. Analysts note that small caps are poised for earnings recovery after years of contraction.
Airlines also gained significant attention, with stocks like United Airlines jumping after a better-than-expected earnings report. United announced a share buyback program, which further boosted confidence among investors. This momentum carried over to the broader airline industry, with the US Global Jets ETF hitting a fresh 52-week high.
Meanwhile, Novavax faced a sharp decline, losing over 17% in value after US regulators halted the company’s trials for its flu-COVID combination vaccine due to safety concerns. This setback cast doubt on Novavax’s future pipeline, contributing to the broader uncertainty in the biotech sector.
The stock market remains in flux, with gains in financials and utilities offset by tech sector concerns. As investors await key retail data, the path forward remains uncertain.
“‘No landing’ is bullish for stocks, in our view, as long as inflation doesn’t flare up.” — Ohsung Kwon, Bank of America
