The Dow hit a record high and the S&P 500 climbed Wednesday as lawmakers approved one of the largest stimulus measures in U.S. history.
Earlier, government data showed that core consumer prices rose less than expected last month, easing investor concerns about inflation. Treasury yields inched lower but that failed to deliver a big boost to tech stocks.
The blue-chip Dow closed one-and-a-half percent higher and the S&P 500 rose more than half percent. But the Nasdaq lost all of its early gains in choppy trading to end flat.
Gerber Kawasaki CEO Ross Gerber says investor’s rotation away from tech stocks has more room to run.
“Many people are overweight technology and are fervent technology fans, so there’s some time still to go in this rotation, especially when you look at some valuation of tech stocks which are really high.”
Meme stock mania intensified as shares of video game retailer GameStop soared as much as 41%, triggering multiple trading halts before paring its gains to close 7% higher. Headphone maker Koss jumped nearly 70%. Retail investors believe Americans will use some of their stimulus check money to buy stocks, especially “meme stocks” promoted on social media platforms.
Roblox made a splashy debut. Shares of the online gaming platform popular among kids jumped 54%, valuing the company at roughly $42 billion.
Shares of GE fell 5%. The conglomerate is combining its aircraft leasing business with that of Irish rival AerCap in a deal worth more than $30 billion.