Investors switched gears Wednesday, streaming back into tech stocks and moving away from the economically sensitive sectors they had favored Monday and Tuesday.
Microsoft, Amazon, Apple and Netflix led the rally, driving the Nasdaq up 2% and the S&P 500 up less than 1%. Weakness in Boeing, Caterpillar and other industrial stocks dragged down the Dow a tenth of a percent.
Financial advisor Ross Gerber of Gerber Kawasaki says the recent market rotation favoring cyclical stocks was premature.
“It’s way too early. This is as good as the economy is going to get right now for the short term, and the reason is is that everybody is out getting COVID right now.”
Shares of Lyft got a slight lift, finishing up 1%. The ride-hailing app said it’s working on a new delivery service for restaurants.
Beleaguered shares of Revlon looked more attractive to investors, gaining almost 23%.
The cosmetics maker said more bondholders are supporting its debt restructuring offer. The company had previously warned it may be forced to file for bankruptcy protection if a certain amount of bonds remained outstanding by mid-November.