The Dow Jones Industrial Average hit a fresh record this week amid an ongoing market rotation out of the hot tech sector and into defensive sectors, such as consumer staples and pharmaceuticals, that have been lagging.
Steady bond prices, amid lower oil prices and a cooling labor market, have accommodated this bullish rotation, as money leaving the leading stock sectors flows into lagging sectors rather than into other asset classes. But some analysts are concerned that the heightened volatility seen in recent weeks is a warning sign of a significant correction ahead.
For the week, the Dow rose 1.89 percent to close at an all-time high of 52,900. The S&P 500 closed 1.71 percent higher at 7,483, near its high for the week. The Nasdaq Composite gained 1.87 percent, while the Russell 2000 lost 0.39 percent….