The Dow Jones Industrial Average rose for a second day to start 2022 as investors bet on the kinds of stocks that would benefit from a robust economy this year despite the omicron threat.
The blue-chip index collected 214.59 points to 36,799.65, an all-time record.
The much-broader S&P 500 index lost 3.02 points to 4,793.54.
The NASDAQ swooned 210.08 points, or 1.3%, at 15,622.72.
But a continuing spike in bond yields to start the New Year caused investors to rotate out of tech stocks, sending the NASDAQ lower. Losses in tech shares that were big winners last year like Nvidia and Tesla weighed on the broader market.
On the winning side in the session were stocks like banks, which stand to benefit from the rise in rates. JPMorgan Chase, American Express and Goldman Sachs were among the biggest gainers in the Dow.
Caterpillar and other stocks linked directly to the economic recovery also boomed. Energy shares like Occidental Petroleum rose 7.4% and Coterra Energy added 6.9%. Halliburton shares jumped 6% as crude prices rose and Morgan Stanley upgraded the oil services company.
Ford Motor was the biggest gainer in the S&P, up 11.6% after the company opened orders this week for its F-150 Lightning electric pickup truck, which it had previously shut down due to an overwhelming response. The company also announced plans to nearly double its production plan to 150,000 annually.
On the losing side in the session were tech names with high valuations as investors rotated out of that sector as rates increased. Tesla, fell 4.1% after jumping 13% on Monday and ending 2021 with a roughly 8.5% gain. Nvidia fell Tuesday by 2.7%. Cloud companies CrowdStrike lost 4.6%, and Okta lost 3.4%.
Investors this week have been betting the economy could overcome the latest surge in COVID cases and riding momentum from what was a stellar 2021 for the markets.
Prices for 10-year Treasurys plummeted, raising yields to 1.65% from Monday’s 1.63%. Treasury prices and yields move in opposite directions.
Oil prices strengthened 92 cents to $77.00 U.S. a barrel.
Gold prices picked up $15.20 to $1,815.30 U.S. an ounce.