The Three Major U.S. Stock Indexes Have a Big Divergence

    On Monday, the market delivered multiple bullish news of a breakthrough in vaccine development. Investors believed that economic activity and people's lives would soon return to normal, and the market responded positively. The stock market rose in response, crude oil prices rebounded sharply, the largest single-day gain in half a year, and the 10-year Treasury bond rate climbed to its highest level since March 20.

The Dow and S&P 500 rose 2.95% and 1.17%, respectively, but the Nasdaq fell 1.5%, the largest single-day gap between the S&P 500 and the Nasdaq since 2008.

 

    There was an obvious rotation in the industry sector. The energy and financial sectors rose as high as 14.3% and 8.2% respectively, and the industrial and raw materials sectors also rose. Cruise ships, airlines, hotels, and restaurants, which have been hit hardest by the outbreak, all surged sharply. Cleaning supplies, game software, e-commerce, telecommuting, social media and other related industries that benefited from the pandemic all fell, dragging down the technology, communication services, consumer staple, and consumer discrete sectors.

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