Investors were cautious on Wednesday, sending indexes lower over fears of a slowing economy. Defensive sectors led the day.
Markets closed the day with mixed results as investors worried about a slowing economy and uncertainty around when the Fed would start bond tapering. Big Tech was viewed as the safe bet, helping keep the growth sectors and the Nasdaq positive for the day.
Employment data kept investors guessing about the Fed’s timeline for bond tapering. However, that did not keep the Nasdaq and S&P 500 from hitting new all-time highs. Defensive sectors led the week, but growth sectors also closed the week with gains.
Defensive sectors led the sector list during a week where employment data kept investors guessing on the Fed’s timeline for bond tapering.
Investors rushed to safety in big tech today after payroll growth data came in much lower than expected. The result was losses across most sectors and indexes, but enough gains in tech mega-caps for the Nasdaq to end the day higher.
Jobs data in the morning improved the economic outlook even while the pandemic remains relentless. Cyclical and defensive sectors outperformed while growth sectors declined for the day.
Markets rallied in the morning before investors turned defensive and the gains faded, weighed down by big tech stocks that all sold off in the later afternoon. Regardless, most of the market held onto some gain for the day.