Visitors to the Disney Springs shopping and dining district during their vacation at Walt Disney World after a phased reopening from Covid-19 restrictions in Lake Buena Vista, Florida July 11, 2020. — Reuters pic
“That is helping the Dow and that has been a laggard versus the S&P this year, but it is more than that,” said Willie Delwiche, investment strategist at Baird in Milwaukee. “At a time when everyone is talking about how big and how important these megacaps are to the S&P, kind of quietly you are starting to see a little bit of a leadership rotation.”
As quarterly results have come in better-than-feared and heavyweight technology and technology-related companies have surged, a heavy dose of fiscal and monetary stimulus have helped fuel a rally in equities to bring the S&P 500 to less than 2 per cent from its closing record on Feb. 19. Earlier, the ADP National Employment Report, which can be an inconsistent precursor to the government payrolls report set for Friday, showed US private employers hired far fewer workers than expected last month.
Financials, industrials and materials , that track economic growth, outperformed among the major S&P sectors.