Dow-Nasdaq Sector Composition Divergence
The divergence in performance between tech-heavy indexes and the Dow highlights the importance of sector composition.
Too little corroboration in the last 3 days to call a trend (3 articles). Watching for it to gain traction.
Mainstream financial press is carrying this — attention has broadened beyond specialist outlets.
"Woods said the index should put pressure on the two companies to split their stocks to better diversify the index."
"The industrials-heavy Dow lagged behind, however, as technology shares drove markets. The blue-chip index that houses 30 stocks and was first constituted in 1896 is price weighted, unlike its peers, making it less exposed to the tech-driven rally."
"The US stock market today shows a clear divergence because different sectors are reacting to completely different forces."
"However, energy and communication services stocks bucked the overall market trend, closing the session lower."
"This divergence shows that sector composition matters."