U.S. stocks staged a modest, albeit mixed, rebound Wednesday, led by gains in the technology sector.
The S&P 500 index SPX, +0.14% switched between small gains and losses and was last flat at 2,344, with six of the 11 main sectors trading lower. Technology shares were leading the gains, up 0.6%. Telecoms were leading the losses, while a drop in oil prices put pressure on energy stocks.
The Dow Jones Industrial Average DJIA, -0.09% was off 40 points, or 0.2%, at 20,627.10. If the blue-chip closes lower on Wednesday, it will be its fifth consecutive decline. Nike Inc shares were down more than 6%, making it the worst performer among Dow components, half of which were trading lower.
The tech-heavy Nasdaq Composite Index COMP, +0.38% was outperforming other benchmarks, up 10 points, or 0.2%, at 5,804.
The main indexes sold off on Tuesday which some analysts attributed to worries that momentum for President Donald Trump’s pro-growth policies is slowing.
U.S. stocks led a global rally after Trump was elected in November, boosted by hopes the new president would introduce measures to lift economic growth and lower taxes. However, with no detailed tax plans released yet, investors are starting to lose patience, analysts said.
Economic news: On the economic front, sales of previously-owned homes tumbled in February as the housing market remains choked by tight inventory. Existing-home sales were at a 5.48 million seasonally-adjusted annual rate last month, the National Association of Realtors said Wednesday.
Shares of American Airlines Group. Inc. AAL, -0.49% were down 1.9% after analysts at Morgan Stanley downgraded the stock to equalweight from overweight.
Banks were also among heavy decliners, extending their losses from Tuesday. Bank of America Corp. BAC, +0.07% was down 1%, Wells Fargo & Co. WFC, -0.81% fell 1.3%, and Citigroup Inc. C, -0.03% dropped 1%.
General Mills, Inc. GIS, -1.80% was down 4%, following a downgrade by Stifel Nicolaus.