Wall Street: S&P 500 and Nasdaq Drop on Profit-Taking of Mega-Cap Stocks

Wall Street: S&P 500 and Nasdaq Drop on Profit-Taking of Mega-Cap Stocks

Wall Street closed mixed This Wednesday June 7th. He S&P 500 and the nasdaq closed in negative territory as investors took profits after a multi-month run of gains in large-cap stocks and awaiting economic and political developments in the next week.

The technological index nasdaq fell 171.52 points (-1.3%) to 13,104.90 and the index expanded S&P 500 -of the largest 500 companies- fell 16.33 points (-0.4%) to 4,267. Meanwhile, the industrial Dow Jonesadvanced 91.74 points (+1.3%) to 33.665 points.

In turn, the small cap index Russell2000 rose to $1,888 (+1.7%) as investors continued to steer clear of large-cap and growth stocks after their strong gains.

“Over the past week, we’ve seen small-caps outperform significantly relative to large-caps”said Paul BaiocchiChief ETF Strategist at SS&C ALPS Advisors. “We’re seeing that persist today.”

Netflix advanced after Wells Fargo raise the share price target from $400 to $500, the highest on Wall Street, according to refinitiv.

Yext Inc soared after the New York-based online marketing firm raised its annual profit forecast.

He energy index advanced after the rise in oil prices, while the KBW index of regional banking reached a maximum of two months.

It is expected that the data US inflation show that consumer prices cooled slightly in May on a month-on-month basis, but core prices are likely to have remained elevated.

Likewise, the decision of the Federal Reserve about rates.

“The engines behind the bullish movements in stocks are present,” said Ben Laidler of eTorohighlighting the agreement on the debt ceiling and the evidence that deposits returned to the US banking system.

“That has given the markets a bit of room to run ahead of inflation in the US. and the fed meeting next week,” he added.

On Tuesday, Wall Street ended with a modest rise: The Dow Jones gained a marginal 0.03% to end at 33,573 points, the Nasdaq advanced 0.36% to 13,276 units and the S&P 500 rose 0.24% to 4,283, its highest so far this year.

Source: Ambito

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