The S&P 500 and NASDAQ Composite retreated on Wednesday as the rotation out of high-flying technology shares into more rate-sensitive names continued.
The Dow Jones Industrials climbed 243.60 points to 41,198.08, lifted by a gain of almost 4% in UnitedHealth following a Wall Street upgrade on the back of its strong earnings report. That builds on Tuesday’s rally of more than 700 points, which marked the blue-chip index’s best day in more than a year.
The much-broader index fell 78.93 points, or 1.4%, to 5,588.27.
The NASDAQ was punished 512.41 points, or 2.8%, to 17,996.92.
Information technology and communication services were the two worst performing S&P 500 sectors in the session. Meta tumbled more than 6%, while big tech peers Apple, Netflix and Microsoft all dropped more than 1%.
Semiconductor stocks struggled in particular. Bloomberg News reported that the Biden administration is considering tougher trade restrictions if companies continue granting China access to U.S.-made technology.
Nvidia faltered more than 6% and U.S.-listed shares of Taiwan Semiconductor fell more than 7%.
Prices for the 10-year Treasury staged a late gain, dropping yields to 4.15% from Tuesday’s 4.16%. Treasury prices and yields move in opposite directions.
Oil prices recovered $2.14 at $82.90 U.S. a barrel.
Gold prices sank $5.80 to $2,462.
