Day Traders Diary
The S&P 500 and Dow Jones Industrial Average fell for a second straight day as traders once again took profits out of names benefiting from the economy reopening and rotated into mega-cap tech stocks. The Nasdaq Composite, meanwhile, closed up 0.5% to a record high closing above $10,000 for the first time.
Shares of Amazon and Apple gained more than 1% each and hit all-time highs. Alphabet and Netflix rose 1.2% and 0.5%, respectively. Stocks that would benefit from the economy reopening — which have outperformed in recent weeks — fell broadly. American Airlines, United and JetBlue all dropped more than 7%. Wells Fargo slid 8.5% while Citigroup lost 4.8%. JPMorgan Chase traded 3.5% lower.
The day before, the Dow fell 300 points or 1.1%, snapping a 6-day winning streak. The 30-stock average was dragged down by a 5.9% drop in Boeing. The S&P 500 lost 0.8% on Tuesday. The index briefly turned positive for the year on Monday.
The Federal Reserve kept interest rates unchanged on Wednesday and indicated it does not expect to raise them through 2022.
In a statement, the Fed said it "expects to maintain this target range until it is confident that the economy has weathered recent events and is on track to achieve its maximum employment and price stability goals."
The committee added it will increase its bond holdings by buying $80 billion per month in Treasuries and $40 billion per month in mortgage backed securities. The Fed also expects the U.S. economy to contract by 6.5% in 2020 before expanding by 5% in 2021.
The benchmark 10-year Treasury yield fell to 0.74% while the 2-year rate dipped to 0.18%.
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