Stocks staged a midweek comeback, as indexes reversed a slump and surged Wednesday afternoon. The Dow added 424 points, powered by Boeing, Chevron, Goldman Sachs and Visa. Recovery-themed stocks helped lift the S&P 500, which closed up 1.14%. Occidental Petroleum and Norwegian Cruise Line helped bolster the index. Even the tech-heavy Nasdaq Composite, which struggled as tech stocks faltered, was able to eke out a win. It rose just shy of 1%, but the index is still down nearly 2% for the week.
Investors are picking their winners as the outlook for the economy improves and Treasury yields rise. To that effect, tech favorites – including Amazon and Apple – are being set aside for energy companies and financials. Indeed, Goldman Sachs was up 3.5% to $330.64, and Wells Fargo boosted its price target on the investment bank to $360 from $335 today.
Another favorite has emerged in small cap companies as investors bet on the economy reopening. The Russell 2000 index outperformed major indexes today, rising by more than 2%. It’s up 15% for the year.
