Dow, S&P End Higher, But Nasdaq Slips

In the last session of 2021's first half, the indexes were languid and range-bound, with the blue-chip Dow posting gains, while the Nasdaq edged lower.

All three indexes posted their fifth consecutive quarterly gains, and the S&P 500 registered its second-best first-half performance since 1998, rising 14.4 percent.

"It's been a good quarter," said Robert Pavlik, senior portfolio manager at Dakota Wealth in Fairfield, Connecticut. "As of last night’s close, the S&P has gained more than 14 percent year-to-date, topping the Dow and the Nasdaq. That indicates that the stock market is having a broad rally."

For the month, the bellwether S&P 500 notched its fifth consecutive advance, while the Dow snapped its four-month winning streak. The Nasdaq also gained ground in June.

This month, investor appetite shifted away from economically sensitive cyclicals in favour of growth stocks.

"Leading sectors year-to-date are what you'd expect," Pavlik added. "Energy, financials and industrials, and that speaks to an economic environment that's in the early stages of a cycle."

"(Investors) started the switch back to growth (stocks) after people started to buy in to (Fed Chair Jerome) Powell's comments that focus on transitory inflation," Pavlik added.

"Some of the reopening trades have gotten a bit long in the tooth and that's leading people back to growth."

"The overall stock market continues to be on a tear, with very consistent gains for quite some time," said Tim Ghriskey, chief investment strategist at Inverness Counsel in New York. "Valuations, while certainly high by historical standards, have been at a fairly consistent level, benefiting from the economic recovery."

The private sector added 692,000 jobs in June, breezing past expectations, according to payroll processor ADP. The number is 92,000 higher than the private payroll adds economists predict from the Labor Department's more comprehensive employment report due on Friday.

The Dow Jones Industrial Average rose 0.6 percent to 34,502, the S&P 500 gained 0.1 percent to 4,297 and the Nasdaq Composite dropped 0.2 percent to 14,503. (Reuters)