Nasdaq Hits Record As Dow, S&P Slip

The Nasdaq closed at a record high on Monday after investors moved into mega-cap growth stocks even as a new round of Covid-19 restrictions underscored the continuing economic impact of the pandemic on the United States.

The tech-heavy Nasdaq advanced to close at a record, as several of its largest constituents, including Apple and Facebook rose. Still, a decline in names such as Alphabet and Microsoft kept major averages in check.

Large cap growth stocks, which had underperformed value stocks in recent weeks as investors looked to names likely to benefit from a reopened economy, edged up while value lost ground.

Authorities in California, the most populous state in the country, on Monday compelled much of its residents to close shop and stay at home the day after it reported a record 30,000-plus new coronavirus cases.

Recent economic data indicating the economy has slowed as previous fiscal stimulus has dried up has highlighted the need for a new congressional relief package, with Friday eyed as a possible deadline when a funding measure for the government expires.

"It is just kind of a waiting game, we are waiting to see if there is going to be any stimulus attached to this funding bill," said Ross Mayfield, investment strategy analyst at Baird.

"Even though we know the vaccine is imminent, it is kind of this weird period where we are waiting on emergency use approval and possible rollout by the end of the week," said Mayfield.

The Dow Jones fell 0.49 percent, to 30,070, the S&P 500 lost 0.19 percent, to 3,692 and the Nasdaq added 0.45 percent, to 12,520.

Weighing heavily on value names were energy stocks, as the S&P 500 energy index was the worst performing among the 11 major sectors as oil prices slipped. The sector had been the best performer this quarter, climbing nearly 30 percent. (Reuters)