Unprecedented fiscal and monetary support as well as increasing bets on stay-at-home tech stocks have powered a rally in U.S. stocks in recent weeks, sending the S&P 500 and Nasdaq to record closing highs on Wednesday.
“The leading sector for quite a long time has been the Nasdaq, which is very heavily weighted in technology stocks so people just saw this as an opportunity to take the profits off the table.” Wall Street’s fear gauge crossed its 200-day moving average, to hit its highest level in seven weeks. At 11:34 a.m. ET, the Dow Jones Industrial Average was down 633.96 points, or 2.18 per cent, at 28,466.54, the S&P 500 was down 105.09 points, or 2.93 per cent, at 3,475.75. The Nasdaq Composite was down 530.39 points, or 4.40 per cent, at 11,526.06. The TSX was down 201 points at 16,496.PVH Corp rose 3.
The Treasury Department can’t prop up the stock market forever.