By Yashaswini Swamynathan
(Reuters) - A rally sparked by Donald Trump's win in the U.S. presidential election that powered the Dow to a record high sputtered on Friday as energy and healthcare stocks came under pressure.
Investors scrambled to adjust their portfolios to benefit from Trump's plans to simplify regulation in the health and financial sectors and boost spending on infrastructure.
The S&P 500 financial index has gained 7.2 percent, industrials 4.1 percent and healthcare 2.9 percent since the U.S. election on Tuesday, far outperforming other sectors.
The S&P is on track to mark its best week since October 2014, despite the pull back on Friday.
"The market this week has been exceptionally strong and when you see a massive rally like this, it is perfectly normal to see some profit-taking," said Adam Sarhan, chief executive of 50 Park Investments.
More From This Section
"The market has earned the right to pause a little bit to digest that move."
Oil prices fell 2.8 percent, slipping below the $45 mark due to a strong dollar and after OPEC said October output had reached a record level. [O/R].
Seven of the 11 major S&P 500 sectors were lower, with declines in energy and health being the steepest.
At 12:21 p.m. ET the Dow Jones industrial average was down 6.82 points, or 0.04 percent, at 18,801.06.
The S&P 500 was down 5.27 points, or 0.24 percent, at 2,162.21 and the Nasdaq Composite was up 16.58 points, or 0.32 percent, at 5,225.37.
Federal Reserve Vice Chairman Stanley Fischer said on Friday economic growth prospects appear strong enough for a gradual hike in interest rates, but the central bank is monitoring an increase in long-term U.S. government borrowing costs.
U.S. bond markets are closed for Veteran's Day on Friday. But the 10-year Treasury yield has hit its highest levels in 10 months already this week.
Nvidia shares jumped 26.3 percent and was the main reason for the Nasdaq to reverse course, after the graphic chip maker reported its biggest quarterly revenue growth in more than six years.
Walt Disney rose 2.1 percent to $97.02 after its executives promised earnings growth for the next two years. Barclays also upgraded the media company's stock to "equal weight" from "underweight".
Declining issues outnumbered advancing ones on the New York Stock Exchange by 1,509 to 1,451. On the Nasdaq, 1,889 issues rose and 852 fell.
The S&P 500 index showed 25 new 52-week highs and six new lows, while the Nasdaq recorded 262 new highs and 32 new lows.
(Reporting by Yashaswini Swamynathan in Bengaluru; Editing by Anil D'Silva)