Technology stocks rally, leading Nasdaq to a record.

Technology stocks led Wall Street higher on Wednesday, but trading was unsteady as investors considered the spreading coronavirus outbreak and new friction between the United States and China.

After swinging from gains to losses and back again, the S&P 500 rose less than 1 percent. The technology heavy Nasdaq composite fared better, rising nearly 1.5 percent, as shares of companies including Amazon, Microsoft, Facebook and Apple rallied. All four of those stocks, and the broader Nasdaq composite, hit record highs on Wednesday.

Technology stocks, favored by investors who see them as insulated from the worst of the coronavirus pandemic, have rallied since late June amid a surge of cases of the virus across the United States. The companies have cash stockpiles that will protect them from any downturn, and products that are in higher demand as the pandemic keeps workers at home.

More broadly, stocks have been climbing recently even as the number of coronavirus cases in the United States surge and governments begin to reinstate restrictions on gatherings and other activity in an effort to contain the virus. That’s in part because of data showing that the economy is rebounding from its lows earlier this year.

But it also puts markets at risk of a sharp pullback if leaders take more drastic action, or investors are confronted with evidence of the toll the pandemic is taking on corporate profits.

Wall Street’s advance on Wednesday stood in contrast to a drop in global markets. Shares in Europe and Asia were mostly lower. — Kevin Granville and Mohammed Hadi.