Big tech edges Nasdaq to record but oil shares slump

The Nasdaq pushed to a fresh record on Thursday on lingering optimism over the US presidential transition, but petroleum-linked shares were hammered by early policies unveiled by President Joe Biden.

Fuelled by more gains in Apple, Facebook and other tech companies, the Nasdaq finished up 0.6 percent at 13,530, a second straight record.

The S&P 500 also edged to a record at 3,853, up less than 0.1 percent, while the Dow Jones fell less than 0.1 percent to 31,176.

Thursday’s session was choppy after all three major indices surged to records on Wednesday in anticipation of an improving economic picture thanks to Biden’s stimulus plan and efforts to bolster the Covid-19 vaccine rollout.

But a series of announcements from Biden slammed petroleum-linked shares, including Dow member Chevron, which dropped 3.5 percent, mid-sized producer Occidental, which fell 6.4 percent and oil services giant Halliburton, which lost 3.3 percent.

Upon taking office, Biden cancelled the permit for the Keystone XL pipeline and froze a plan to allow drilling in the Arctic National Wildlife Refuge. An Interior Department order also froze new leases for oil and gas drilling on public lands for 60 days.

Earlier on Thursday, the housing market again showed strength in December, with homebuilding projects jumping 5.8 percent from the prior month. Meanwhile, new jobless claims fell marginally from the prior week, but remained at 900,000, a stunningly high level some 10 months into the coronavirus pandemic.

Among individual companies, United Airlines slumped 5.7 percent as it projected first-quarter revenue would decline 65 percent, after reporting a US$7.1 billion loss in 2020 due to the big downturn in travel caused by the coronavirus. (AFP)