S&P 500 rises on defensive bets as tech-heavy Nasdaq chieftains charges

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S&P 500 rises on defensive bets as tech-heavy Nasdaq chieftains charges

On Wednesday, a slew of US stocks had rounded off the session in an ambivalent tenure with benchmark S&P 500, accountable for more than 45 per cent of entire trading activities in the Wall Street, and tech-heavy Nasdaq edging higher, though the trade-sensitive Dow had winded up the day marginally lower as lawmakers in Washington had been wrangling over a second impeachment hearing for the departing US President Donald Trump.

In point of fact, Wednesday’s gains in the Wall Street were almost entirely prodded by an increase in investors’ bet on defensive stocks such as cyclicals and healthcare as investors seemed to be waiting for the details of a trillion-dollar fiscal stimulus as promised by the US President-elect Joe Biden earlier this month, while investors cautions had stepped up further as Congress began the second impeachment hearing for US President Donald Trump as beforementioned.

Notably, followed by Wednesday’s impeachment hearings, Trump became the first US president ever who had been subject to impeachment hearings twice in a single term.

S&P closes higher on defensive bets, Dow ends marginally lower

In point of fact, in context of a calamitous political outlook in Washington with FBI (Federal Bureau of Investigation) reporting threats of further violence from pro-Trump extremist Republicans ahead of a January 20 inauguration of the President-elect Joe Biden, investors turned a deaf ear to more risk-sensitive stocks which in effect had led to a fecund feathering of rate-sensitive defensive stocks.

However, Intel Corp. has been the largest gainer amongst S&P 500 listed US corporate behemoths, which ascended as much as 7 per cent following a media headline that said the US semiconductor industry giant would replace its Chief Executive Bob Swan with VMware Chief Pat Gelsinger as early as by next month.

Citing statistics, in the day’s Wall Street closing bell, trade-sensitive Dow fell 0.03 per cent to 31,060.47 and S&P 500 added 0.2 per cent to 3,809.84, while tech-heavy Nasdaq rose 0.43 per cent to 13,128.95.

Meanwhile, referring to a sheer rise in investors’ caution, a US investment strategist at Allianz Global Investors in New York, Mona Mahajan said, “Investors have been for some time looking to the second half of 2021. They continue to hope for a real reopening.