Strong economic data has put pressure on growth stocks, which are more likely to be impacted by potential interest hike. — AFP picNEW YORK, May 22 — Wall Street closed mixed at the end of a volatile week of trading, with the Dow Jones Industrial Average being the only bright spot, as inflation concerns loom over growth names.
“Once we get to the latter part of 2020, we expect to see a greater rotation out of technology and into more cyclical and defensive stocks as the recovery takes greater shape,” said Greg Bassuk, chief executive at AXS Investments. Nasdaq Composite finished yesterday down by 64.75 points, or 0.48 per cent, to 13,470.99. Despite the weakness yesterday, the Nasdaq quit a four-week losing streak as investors continue to rotate around tech-related mega-cap shares, which recently took the biggest hit on inflation worries.
Ford Motor Co surged by 6.7 per cent in its biggest one-day gain since December after it announced plans on Thursday to form a battery joint venture in the United States with South Korean battery maker SK Innovation to support its electric vehicle rollout, confirming a Reuters report earlier.