S&P 500, NASDAQ, and Dow Were Mixed on December 6
After trading with strength for two trading weeks, the S&P 500 started this week on a weaker note. It fell for the first two trading days this week. The S&P 500 opened the day lower on Wednesday. On December 6, five out of the S&P 500’s 11 major sectors rose.
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Strength in IT and consumer staples sectors supported the market. Weakness in the energy and telecom services sectors weighed on the market.
The market sentiment was weak at the beginning of this week amid the sell-off in the technology sector and sector rotation. On Wednesday, the market opened lower amid weakness in global markets but regained strength as the day progressed. The stronger-than-expected US ADP non-farm employment change released on Wednesday. There was also a rebound in the tech sector. Weakness in the energy sector made the S&P 500 fall for the fourth consecutive trading day. The market is looking forward to the release of initial jobless claims at 8:30 AM EST on December 7.
The S&P 500 remained rangebound for most of the day amid mixed sentiment. The CBOE Volatility Index (or VIX) measures uncertainty in the market. It fell 2.74% to 11.02 on December 6. 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 falling for three trading days, the NASDAQ Composite Index rebounded on Wednesday amid a recovery in the technology sector. The NASDAQ Composite Index rose 0.21% and closed the day at 6,776.38 on December 6. On Wednesday, the Dow Jones Industrial Average closed at 24,140.91—a fall of 0.16%.
In the next part, we’ll discuss how the US Dollar Index and US Treasury yields performed in the early hours on December 7.