Feb 9 Reuters The Nasdaq ended at a new closing high on Tusday but the broad market closed slightly lower as investors rotated out of largecap tech names into other sectors seen as benefiting from President Joe Bidens proposed 1.9 trillion stimulus bill.
The techheavy Nasdaq hit an alltime high for the fifth consecutive session on early gains in Apple Inc, Amazon.com Inc and Googleparent Alphabet Inc, which later turned lower amid a shift in portfolio allocations.
The NYSE FANG TM index, which includes Facebook Inc, Netflix Inc and Tesla Inc, rose to an alltime high.
With the number of U.S. COVID19 cases falling and expectations the stimulus package will be approved in Congress, investors are hardpressed to find significant negatives, said Michael James, managing director of equity trading at Wedbush Securities in Los Angeles.
Youre not seeing money coming out of the market and going into cash, James said. Youre seeing money coming out of one sector and being rotated into another sector to maintain an overall long bias.
Largely upbeat corporate earnings, along with monetary and fiscal support, have powered the major U.S. stock indexes to record highs. But analysts caution the new COVID variants and any glitches in vaccine rollouts could sour positive sentiment.
The backdrop is largely positive for stocks and Im not sure there could be a better backdrop for risk assets in the near to intermediate term, said William Herrmann, cofounder and managing partner at…