US Stocks Forecast: Nasdaq supported by tech big caps
- The Dow Jones Industrial Average fell 266.19 points, or 0.74%,
- The S&P 500 lost 23.11 points, or 0.51%, and the Nasdaq Composite added 0.12 points.
US stocks were mixed on Wednesday as strong results from technology heavyweights kept the Nasdaq Composite in the green. However, declining government bond yields and a drop in commodity prices sent the Dow Jones Industrial Average and the S&P 500 lower.
The Nasdaq finished little changed on Wednesday, supported by gains in Microsoft and Google parent Alphabet following quarterly results. The Dow Jones Industrial Average lost 266.19 points, or 0.74%, to 35,490.69, the S&P 500 dropped 23.11 points, or 0.51%, to 4,551.68 and the Nasdaq Composite added 0.12 point, or unchanged, to 15,235.84.
As for performers, Microsoft Corp MSFT added 4.21% and ended making a record high after forecasting a strong end to the calendar year. Alphabet Inc rallied 4.96% after reporting a record quarterly profit on a surge in ad sales. The move combined added 90 points to the Nasdaq. Microsoft was the biggest boost to the Dow Industrials, S&P 500 and Nasdaq. Meanwhile, the drop in the far data US Treasury bond yields and a flattening of the yield curve lifted the growth stocks which were the only advancing S&P sectors on the day.
The benchmark 10-year US Treasury yield declined for a fourth straight day, dropping more than 6 basis points to put it on track for its biggest one-day decline since Aug 13. Thus taking it below the daily dynamic trendline support and opening bearish prospects:
Author
Ross J Burland
FXStreet
Ross J Burland, born in England, UK, is a sportsman at heart. He played Rugby and Judo for his county, Kent and the South East of England Rugby team.
