NEW YORK – Wall Street pulled back from the celebration that followed good news on a potential Covid-19 vaccine, ending yesterday’s session mixed.
The benchmark Dow Jones Industrial Average finished the day with a 0.9% gain at 29,420.92, while the broader S&P 500 dipped 0.1% to 3,545.53.
The tech-heavy Nasdaq lost 1.4% to close at 11,553.86.
Optimism about Monday’s announcement from Pfizer and BioNTech that their vaccine is 90% effective was tempered by the realisation that economic gains will likely not be felt until late next year, since it will take months for any vaccine to be widely distributed.
Meanwhile, investors are shifting away from stay-at-home stocks like videoconference service Zoom, and are returning to back-to-normal shares like airlines and cruise companies.
Quincy Krosby from Prudential Financial said: “Tech names were overbought, reaching the point where we would expect to see some consolidation”.
That trend should continue as focus turns to “sectors that will benefit from a vaccine once it is distributed and take us to the other side of the pandemic”.
Uncertainty generated by the US presidential election has receded after Joe Biden defeated Donald Trump, and the latter’s avalanche of legal challenges against the result has not made waves in markets.
Investors continue to bet that Biden will deliver a new stimulus package to boost the US economy, although the chance that Republicans will retain control of the Senate means the package may not be as expansive as they would like.
Pfizer shares gained for most of the day, but dipped late in the session, ending 1.3% lower.
Zoom, which millions of people have relied on during the pandemic for business and social activities, lost another 9% after plunging more than 17% on Monday. – AFP, November 11, 2020
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