How Did the S&P 500, NASDAQ, and Dow Perform on December 4?
After gaining for two trading weeks, the S&P 500 started this week on a mixed note. On Monday, six out of the S&P 500’s 11 major sectors rose. A rally in the telecom services and financials sectors pushed the market higher. Weakness in the IT sector made the market reverse its gains.
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The market sentiment was strong early on Monday amid progress in tax reform plans. The market opened higher and rose to fresh record high intraday levels. However, the sell-off in technology stocks reversed the market sentiment. Rotating money from technology into the consumer discretionary and financials sectors increased selling in the IT sector. According to the U.S. Census Bureau, US factory orders fell 0.1% in October. It’s better than analysts’ forecast of a 0.4% fall.
The S&P 500 rose to fresh record highs, reversed, and ended the day with a loss. The CBOE Volatility Index (or VIX) measures uncertainty in the market. It rose 2.2% to 11.68 on December 4. The VIX is measured on a scale of one to 100 with 20 as the historical average. The VIX is also called the “fear index.” Usually, it has an inverse relationship with stocks and rises when the S&P 500 falls.
NASDAQ and Dow
After pulling back last week, the NASDAQ Composite Index started this week on a weaker note. The tech sell-off on Monday weighed on the tech-heavy NASDAQ Composite Index. It fell 1.1% and closed the day at 6,775.37 on December 1. On Monday, the Dow Jones Industrial Average closed at 24,290.05—a gain of 0.24%.
In the next part of this series, we’ll discuss the S&P 500’s top gainers on Monday.