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Dow Reaches New Record High But Nasdaq Posting Steep Loss

wallstreet higher 050119 10may21 lt

While the Dow has climbed to a new record intraday high in morning trading on Monday, the tech-heavy Nasdaq has shown a substantial move to the downside. The S&P 500 has spent the morning bouncing back and forth across the unchanged line.

Currently, the major averages are turning in a mixed performance. The Dow is up 192.76 points or 0.6 percent at 34,970.52, but the Nasdaq is down 232.49 points or 1.7 percent at 13,519.75 and the S&P 500 is down 11.53 points or 0.3 percent at 4,221.07.

The steep drop by the Nasdaq comes amid weakness among technology stocks following negative analyst comments about several big-name companies.

Google parent Alphabet (GOOGL) and Facebook (FB) are posting notable losses after Citi downgraded both stocks to Neutral from Buy.

Oracle (ORCL) has also moved to the downside after Barclays downgraded its rating on the business software giant's stock to Equal Weight from Overweight.

Goldman Sachs chief U.S. equity strategist David Kostin has also warned about the potential negative impact on the earnings of big-name tech companies if President Joe Biden's corporate tax plan were fully enacted.

On the other hand, the Dow is benefiting from strong gains by companies such as 3M (MMM), Procter & Gamble (PG) and Walgreens (WBA).

Semiconductor stocks have shown a significant move to the downside on the day, dragging the Philadelphia Semiconductor Index down by 3 percent.

Qorvo (QRVO), Brooks Automation (BRKS) and Lattice Semiconductor (LSCC) are turning in some of the sector's worst performances.

Computer hardware, software and biotechnology stocks are also seeing notable weakness, contributing to the steep drop by the Nasdaq.

On the other hand, steel stocks are extending a recent upward trend, driving the NYSE Arca Steel Index up by 2 percent to its best intraday level in nearly ten years.

Housing, telecom and utilities stocks are also seeing considerable strength on the day, partly offsetting the weakness in the tech sector.

In overseas trading, stock markets across the Asia-Pacific region moved mostly higher during trading on Monday. Japan's Nikkei 225 Index climbed by 0.6 percent, while China's Shanghai Composite Index rose by 0.3 percent.

Meanwhile, the major European markets have moved to the downside on the day. While the U.K.'s FTSE 100 Index has dipped by 0.3 percent, the French CAC 40 Index and the German DAX Index are both down by 0.2 percent.

In the bond market, treasuries have moved slightly higher after turning lower over the course of the previous session. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price is down by 1.2 basis points at 1.565 percent.

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