Dow Ends at Record High as Nasdaq Remains Correcting – Hasn’t Happened in 20 Years

The Dow Jones has not hit an all-time high as the Nasdaq Composite has been in correction territory since the days of the dot-com boom and collapse on August 23, 1999, according to Dow Jones Market Data.

The Nasdaq Composite COMP,
-0.04%
officially entered a correction on Monday, when the index was down 10.54% from its high on February 12, and many market technicians consider an asset to remain in correction until it reaches a new high. Dow Jones considers an asset to come out of the correction when it climbs at least 10% from its low correction point.

The rally in the Dow was propelled by industrialists Boeing Co. BA,
+ 6.39%,
drugstore chain Walgreens Boots Alliance Inc. WBA,
+ 4.25%
and the Home Depot HD renovation chain,
+ 1.11%,
who have benefited from the so-called reopening of trade as investors turn to tech companies that have performed well during the pandemic to those that may perform better as the economy recovers.

The Nasdaq has been under pressure from its all-time high in mid-February as turnover out of tech and growth stocks accelerated as bond yields rose amid fears of inflation and rapid economic growth in 2021 after Congress passed a $ 1.9 trillion fiscal stimulus. bill.

Congress finalized passage of the Sixth Coronavirus Relief Bill on Wednesday and sent it to President Biden for signature, with Democrats including a broad round of payments to households, businesses and local governments without any support of the Republican Party.

Passage of the bill helped boost action on Wednesday. The Dow Jones Industrial Average DJIA,
+ 1.46%
rose 1.46% to 32,297, surpassing its previous high of 31,961.86 reached in late February. The Nasdaq Composite COMP,
-0.04%
slipped 0.04% to 13,068.83.

Stock market experts expect pandemic winners from Wall Street to Nasdaq to turn further to financials and energy stocks.