By Chuck Mikolajczak
NEW YORK (Reuters) - A sharp decline in technology stocks weighed on both the Nasdaq and the S&P 500 indexes on Thursday, while the Dow managed to stay afloat thanks to advances in bank and energy shares.
Declines in Facebook
While Wall Street has rallied since the November election on hopes that President-elect Donald Trump's policies will trigger inflation and hasten a rise in interest rates, technology stocks have failed to participate, dropping more than 2 percent.
"In a higher rate environment you are going to want to pay less for growth further out. To a large extent that is probably what is happening in the higher (price-to-earnings) stocks," said Kim Forrest, senior equity research analyst at Fort Pitt Capital Group in Pittsburgh.
"Everybody is getting tarred and feathered."
The Dow managed to move higher, as gains in high-priced names in the financial and energy sectors advanced. Goldman Sachs
The Dow Jones industrial average <.DJI> rose 62.35 points, or 0.33 percent, to 19,185.93, the S&P 500 <.SPX> lost 8.34 points, or 0.38 percent, to 2,190.47 and the Nasdaq Composite <.IXIC> dropped 72.19 points, or 1.36 percent, to 5,251.49.
A continued rally in oil helped Chevron
The S&P 500 energy index <.SPNY> rose 0.4 percent, while the S&P financial index <.SPSY> climbed 1.6 percent.
Investors are now turning their attention to Friday's U.S. payrolls report for confirmation the economy continues to strengthen, with an eye on an expected hike in benchmark U.S. interest rates by the Federal Reserve at its meeting on Dec. 13-14.
Traders have priced in a 91 percent chance of a rate increase in December, according to Thomson Reuters data.
Declining issues outnumbered advancing ones on the NYSE by a 1.71-to-1 ratio; on Nasdaq, a 1.63-to-1 ratio favoured decliners.
The S&P 500 posted 79 new 52-week highs and seven new lows; the Nasdaq Composite recorded 164 new highs and 51 new lows.
(Reporting by Chuck Mikolajczak; Editing by James Dalgleish)
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