Wall St ends sharply lower as pandemic fears resurge


  • Markets
  • Friday, 13 Nov 2020

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.

NEW YORK: Wall Street ended sharply lower on Thursday as U.S. coronavirus infections surged and investors weighed the timeline for the mass rollout of an effective vaccine.

New York became the latest state to introduce stricter social distancing rules on Wednesday, 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. - Reuters

Article type: metered
User Type: anonymous web
User Status:
Campaign ID: 1
Cxense type: free
User access status: 3

Wall Street , Covid-19 , fears , vaccine

   

Did you find this article insightful?

Yes
No

100% readers found this article insightful

Next In Business News

Lumentum to buy laser manufacturer Coherent Inc in US$5.7bil deal
Wall St closes higher as Yellen backs more stimulus
MCO 2.0 to cost Malaysia RM600m daily, Zafrul says
Two Menang Corp shareholders seek removal of four directors
Federal Court rules in favour of house buyers over late delivery
Beshom to take over listing status of Hai-O Enterprise
Karyon reports 4 workers tested positive for Covid-19
KLCI reverses gains, falls 7.64 points
Dollar drops as traders prepare for Yellen to talk up stimulus
Norway awards O&G exploration rights to 30 firms

Stories You'll Enjoy