Nasdaq hits new high, Dow and S&P fall from Friday records

Dec. 7 (UPI) — The Nasdaq Composite rose slightly to a new high on Monday, while the Dow Jones Industrial Average and S&P 500 fell from record highs.

The tech-heavy Nasdaq rose 55.71 points, or 0.45%, to a new record 12,519.94, while the Dow dropped 148.47 points, or 0.49%, and the S&P declined 7.16 points, or 0.19%.

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Tesla stock helped to propel the Nasdaq higher as it climbed 7.13% to its own record high. Facebook also gained 2.1% and Apple increased 1.23%.

Intel dropped 3.43% to lead the Dow’s decline, while the S&P’s energy sector dragged it lower as it fell 2.4%.

The Nasdaq, Dow and S&P 500 had all closed at record highs after posting gains Friday before the latter two dropped Monday.

“In the near-term, the risk of a modest equity market pullback has risen because the worsening virus situation in the U.S. could spur a positioning unwind,” Goldman Sachs equity strategists said Monday. “Although vaccine approval appears imminent, increased restrictions or shutdowns in the U.S. could slow the near-term recovery in economic growth.”

JPMorgan Chase strategists also warned that there was strong consensus in the market that investors hedge against crowded trades.

“For asset allocators, what is thus important is scale exposure to avoid an overly concentrated portfolio,” the report stated. “One way of scaling exposures to the consensus trading themes is by limiting exposure to the most crowded ones.”