Wall Street ends lower as pandemic fears resurge

Wall Street ended sharply lower on Thursday as U.S. coronavirus infections surged. ...

On Wednesday, New York became the latest state to introduce stricter social distancing rules as new infections in the country surged above 100,000 for an eighth consecutive day. 

The blue-chip Dow was pulled down by industrial and financial companies sensitive to economic growth, with Boeing Co and Goldman Sachs down 3% and 1.6%, respectively. 

Airlines and cruise operators, among the hardest hit by the coronavirus pandemic, also fell. The S&P 1500 airlines index dropped 3.1%, while Royal Caribbean Cruises Ltd fell 4% and Carnival Corp tumbled almost 8%. 

“The market is reacting to the rise in COVID cases nationwide,” said Michael Antonelli, a market strategist at Baird in Milwaukee. “Vaccine news helps at some point in the future, but today we are dealing with an accelerating spread,” 

Even after Thursday’s drop, the S&P 500 has gained almost 2% this week, buoyed by positive vaccine trial data that increased expectations of a quick economic recovery. Stocks have also benefited from expectations that a divided Congress will keep President-elect Joe Biden from enacting tax hikes that would hurt corporate profits. 

“The reality is that we don’t know what the new normal is going to look like, even when we do recover from the coronavirus, and that is still a ways away,” said Tom Martin, senior portfolio manager at Globalt Investments in Atlanta. 

“It’s the classic between the market discounting something that is nine to 12 months out, and then ‘undiscounting’ it because it has not happened yet.” 

In extended trade, Cisco Systems Inc jumped 8.6% after the network gear maker reported its quarterly results. 

New data showed U.S. jobless claims fell to a seven-month low last week, but the pace of job recovery slowed as fiscal stimulus waned and further improvement could be limited by a raging pandemic. 

Unofficially, the Dow Jones Industrial Average fell 1.08% to end at 29,080.17 points, while the S&P 500 lost 1.00% to 3,537.01. 

The Nasdaq Composite dropped 0.65% to 11,709.59. 

Among the biggest boosts to the Nasdaq was a surge 20% in the U.S.-listed shares of Chinese e-commerce company Pinduoduo Inc after it reported strong quarterly revenue. 

Rival JD.com Inc’s shares climbed 4.3%. 

The S&P 500 energy index slumped 4% and materials lost 2.5%. 

Moderna Inc rallied 6.5% after the drugmaker said it had enough data for a first interim analysis of the late-stage trial of its experimental COVID-19 vaccine. It did not say when it plans to release the data. 

On U.S. exchanges, 10.3 billion shares changed hands, compared to an average of 10.0 billion shares for the last 20 sessions. 

Declining issues outnumbered advancing ones on the NYSE by a 2.95-to-1 ratio; on Nasdaq, a 2.17-to-1 ratio favored decliners. 

The S&P 500 posted five new 52-week highs and no new lows; the Nasdaq Composite recorded 70 new highs and 11 new lows. 

Reported by Noel Randewich 

Sourced Reuters 

For more Finance & Investment news follow i-invest Online


Other stories you may like

  • Equiti opens its latest office in Limassol, Cyprus
    Equiti has announced the opening of its latest regulated office in Europe in Limassol, Cyprus. Speaking at the official office opening event, Mohamed Alahmad, Co-founder and Chief Managing Director of Equiti Group, said: “Equiti’s new office in Limassol is a major milestone for the Group…
  • The home of life sciences in Latin America
    Exporting more than $2bn during 2020, the life sciences companies of Coyol Free Zone have proved why this is the heart of Latin America’s medical innovation It is no coincidence that Coyol Free Zone in Costa Rica has become one of the most important clusters…
  • Your trusted partner in forex
    Always innovating, ActivTrades is delivering on its mission to provide premium services to clients looking to trade with CFDs and spread betting instruments The last two decades have seen an explosion of new forex businesses. The sector has seen a tremendous rise in popularity due…
  • Costa Rica: The gold standard in global FDI
    Placing an emphasis on “sustainable productivity”, Costa Rica has emerged as the world’s leading near-shorting destination for high-tech companies Home to over 360 multinational companies, Costa Rica is punching well above its weight when it comes to attracting FDI greenfield projects. In 2021, the nation…
  • The automation lifeline
    As Europe stares down the barrel of recession, firms must embrace the solutions that technology offers, says Gert-Jan Wijman of Celigo With the UK on the brink of recession, and continental Europe possibly following suit as the year-end approaches, businesses are facing tremendous pressure to…

Follow us