2024-07-21 04:43:58
The “red” was closed Wall Street today’s session, capping a week marked by investors shifting from large-cap stocks to smaller names.
O S&P 500 lost 0.71% of its value, closing at 5,505 units, while o Nasdaq recorded losses of 0.81% to 17,726.94 points. THE Dow Jones fell 377.49 points or 0.93% to 40,287.53 points.
Down 0.63% and the Russell 2000 small-cap index, which will be more favored by an interest rate cut by the Federal Reserve.
For the week, the S&P 500 fell 1.97% in its worst weekly performance since April. The Nasdaq fell more than 3.65 percent, also in its worst week since April after a six-week winning streak. An exception was the Dow, which showed gains of 0.72%, while the Russell 2000 was also strengthened by 1.68%.
“Investors have taken their money out of the big tech companies, which have performed very well this year, and moved it into other areas of the market. This process will take a long time,” says Glenn Smith, chief investment officer at GDS Wealth Management.
That divergence was encouraged by some Wall Street analysts, who worried that the market’s rally had become too dependent on a few tech bigs.
That shift explains the Nasdaq’s underperformance this week. Accordingly, the information technology sector was the biggest loser in the S&P 500 index, down 5.1%.
CrowdStrike’s stock plunged more than 11% after the technical problem wreaked havoc on IT systems around the world.
The New York and Nasdaq markets were not affected.