The S&P 500 carried its 2021 momentum into the new year, with the benchmark closing at new highs on Monday. The Dow also climbed to fresh records and the Nasdaq jumped 1.2%. The tech-heavy index did give up most of those gains on Tuesday, as Wall Street took some profits and perhaps started to focus on recently-rising interest rates.
Meanwhile, the Dow posted another strong day, driven by Caterpillar, JPMorgan, and other non-tech stocks. The divergence could signal investors are starting to worry about higher interest rates again and their impact on growth-focused stocks, with technology being the standout sector.
Still, it’s hard to imagine investors will move out of equities, and therefore technology stocks given their massive sway over indexes and passive investment vehicles.
Plenty of obstacles await in 2022. Luckily, many market-moving forces remain rather bullish for stocks, and history…