In a reversal of the recent trend, the Dow and S&P 500 were sharply outperforming the Nasdaq, which on Thursday registered its fifth record closing high in six days.
“We’re seeing I think some rotation from winners into the laggards here today. And we’ve seen that gap widen quite a bit between the leaders and laggards over the last week, so I think it makes sense there’s a little profit-taking in that trade especially heading into earnings season,” said Rob Haworth, senior investment strategist at US Bank Wealth Management in Seattle.
Bank of America Corp, Citigroup Inc, JPMorgan Chase & Co and Goldman Sachs rose ahead of their financial results next week, which would mark the onset of the second-quarter earnings season.
Overall profits for S&P 500 companies are expected to have fallen the most in the second quarter since the financial crisis, according to IBES data from Refinitiv.
A slate of economic data, including a record monthly payrolls addition, has pointed to a revival in business activity in June, fueling the US stock market’s stimulus-driven rally.
The S&P 500 has risen more than 40% from its March lows and stands about 8% below its record high hit in February.
The Dow Jones
Industrial Average rose 312.93 points, or 1.22%, to 26,019.02, the S&P 500 gained 24.59 points, or 0.78%, to 3,176.64 and the Nasdaq Composite added 25.62 points, or 0.24%, to 10,573.37.
Carnival Corp jumped 10.2% after the cruise line operator said it was planning to resume operations in a phased manner and would operate with a smaller fleet on its return.
Netflix Inc rose 7.6% after Goldman Sachs hiked its price target on the video streaming service’s shares.