O Nasdaq closed the trading session this Wednesday close to stability, favored by the gains of Microsoft (MSFT) yes Alphabet, controller of the Google, after the release of quarterly corporate balance sheets, but a drop in oil prices and a pullback in Treasuries yields weighed on cyclical sectors and pulled the S&P 500 down.
Microsoft Corp advanced 4.21% and set a new record close after forecasting a strong year-end, fueled in part by its expanding cloud business.
Alphabet Inc jumped 4.96% after reporting record quarterly profit with an increase in ad sales.
Gains in both stocks accounted for nearly 90 points higher on the Nasdaq, while Microsoft was the biggest boost for the Dow Industrials, S&P 500 and Nasdaq.
A pullback in long-term US government bond yields and a flattening of the yield curve also helped support growth names like those in consumer discretionary and communications services, which were the only sectors of the S&P to make headway in the day
Ten-bond yields fell for the fourth day in a row, down 6 basis points.
“Growth names will get a boost not just from corporate balance sheets, but because interest rates are lower,” said Megan Horneman, director of portfolio strategy at Verdence Capital Advisors in Hunt Valley, Maryland.
O S&P 500 (SPX) fell 0.51%, to finish at 4,551.68 points, while the Nasdaq (US100) closed practically stable at 15,235.84 points. O Dow Jones (DJI) fell 0.74% to 35,490.69 points.
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