Image: 5-day chart, S & P 500 index.Source: Yahoo Finance
Stan Choe, Damian J. Troise, Alex Veiga
Wall Street closed the day of volatile trading on Thursday as market tug of war continued between concerns about the current pandemic deterioration and optimism that vaccines would save the economy of the future.
The S & P 500 rose 0.4% after switching most of the day between small losses and profits. The Benchmark Index was off the 1.2% slide from the day before it pulled it away from the 3,626.91 record set on Monday. A burst of buying late in the afternoon wiped out almost all of the S & P 500’s losses that week.
Technology companies accounted for the majority of the rebound. Companies that rely on consumer spending and telecommunications stocks have also helped the market rise, outpacing losses in the utilities and healthcare sectors. Treasury yields are declining and the market needs attention.
The S & P 500 rose 14.08 points to 3,581.87. The Dow Jones Industrial Average rose to 29,483.23 by 44.81 points, or 0.2%. The index was down 210 points. The technology-intensive Nasdaq Composite index rose 103.11 points (0.9%) to 11,904.71.
Small-cap stocks were strong. The Russell 2000 Index rose 14.82 points, or 0.8%, or 1,784.13.
A large November rally on Wall Street slows this week as concerns about a short-term recession clash with expectations of stronger growth next year if an effective coronavirus vaccine becomes available. Did. A disappointing report on Thursday emphasized fear and showed that more US workers applied for unemployment benefits than last week. That was a worse number than economists expected, the first increase in five weeks.
Due to the increasing number of infectious diseases and hospitalizations nationwide, the governor and mayor are generous in issuing mask obligations, limiting the size of meetings, banning meals in indoor restaurants, closing gyms, etc. Limits the time and capacity of your business.
Ross Mayfield, Baird’s investment strategist, said: “The good news about vaccines is fighting the exacerbation of the coronavirus.” We are at this point when you are nearing the end, but the road to getting there looks really vague. “
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Investors are worried that the move and the worsening pandemic will undermine corporate profits, undermine consumer confidence and stay at home. New York City’s announcement to stop face-to-face learning in public schools helped send stock on Wednesday’s midnight slide.
Meanwhile, Washington Democrats and Republicans are still in dire straits at attempts to provide other financial support to workers and businesses. It has a harsh winter ghost approaching both the healthcare system and the economy.
To offset all these concerns is the hope that the upcoming vaccine will be able to curb the pandemic and bring the world economy back to normal next year.
Bill Northey, Senior Investment Director at US Bank Wealth Management, said: “The market is working on pushing and pulling the evolution of vaccine trucks.
Scientists at Oxford University are hoping to report the results of a late trial of the COVID-19 vaccine being developed in AstraZeneca by Christmas, key researchers said Thursday.
Already this month, pharmaceutical companies provided data suggesting that other vaccines under development could be very effective. Pfizer and BioNTech said Wednesday that they would ask US regulators to allow emergency use of the vaccine within a few days.
It has led to a resurgence of interest in equities that are in a position to maximize profits from a healthy and reopened economy. These were also one of the hardest hit stocks by the pandemic-generated stay-at-home order, including travel companies, banks and small businesses.
Investors will need to be more clear about the timing and impact of vaccines in order to gain confidence in the economic recovery, according to Nosei.
“We’ve seen a sharp recovery so far, but now it’s starting to peak,” he said. “We are doing that for the very important holiday shopping season.”
The company behind Bath & Body Works and Victoria’s Secret recorded the biggest profits on Thursday at the S & P 500. After reporting profits for the most recent quarter, which exceeded Wall Street’s expectations, it recorded a vault of 17.7%.
Yields on 10-year Treasuries fell from 0.86% late Wednesday to 0.84%.
European stock markets have fallen and Asian markets have been mixed.
Contributed by AP Business Writer Joe McDonald.
Source: Associated Press