U.S. Stock Rally Halted in Week as Tech Slumps Amid Bond RoutBy
Tech shares drop 2.9 percent in worst week since April
Energy stocks rally as oil surges on OPEC output deal
The post-election rally in the U.S. stock market was put on hold this week as a rally in energy companies was offset by a selloff in technology shares and a bond market rout that weighed on dividend-paying shares.
The S&P 500 Index ended the five days 1 percent lower at 2,191.95, halting a three-week advance. Tech stocks led losses with a 2.9 percent drop -- the most since April -- while utilities and real-estate stocks that benefit from lower interest rates slid as the 10-Year Treasury yield reached the highest in more than a year. A three-week rally in small-cap shares reversed as the Russell 2000 Index dropped 2.5 percent. The Dow Jones Industrial Average added 0.1 percent as bank shares gained for the fourth straight week.
The weekly loss halted a rally spurred by speculation that President-elect Donald Trump will enact policies that bolster growth in the U.S. and usher in a wave of deregulation in the financial industry. While bank stocks continued their climb, they did so at the slowest pace since the election. Shares of industrial companies, which jumped 8 percent after the Nov. 8 vote before this week, were little changed in the five-day period.
For more analysis of the stock market this week
- Whiff of Danger in Bank Stocks Returning $300 Billion in 25 Days
- Strategists’ S&P 500 Index Estimates for Year-End 2017 (Table)