Press "Enter" to skip to content

US Stocks Retreat From Records Amid COVID Gloom

Shares

Key Points

  • US equities had another bumpy ride Tuesday, pulling back from new records to close lower as the spike in coronavirus infections undermined tentative optimism about the economic recovery.
  • The bellwether Dow Jones Industrial Average fell 0.6 percent to end at 29,783.35, after finishing at an all-time high on Monday.
  • The S&P 500, which also closed at a record Monday, lost 0.5 percent to 3,609.53, while the tech-rich Nasdaq Composite Index dipped 0.2 percent to 11,899.34.
  • Visit The Financial Today’s homepage for more stories.

NEW YORK — US equities had another bumpy ride Tuesday, pulling back from new records to close lower as the spike in coronavirus infections undermined tentative optimism about the economic recovery.

The bellwether Dow Jones Industrial Average fell 0.6 percent to end at 29,783.35, after finishing at an all-time high on Monday.

The S&P 500, which also closed at a record Monday, lost 0.5 percent to 3,609.53, while the tech-rich Nasdaq Composite Index dipped 0.2 percent to 11,899.34.

Wall Street has lurched up and down in recent weeks, with changing economic fortunes. The recent rally has been propelled by optimism over the news of two successful coronavirus vaccines.

But sentiment has been blunted by worries over skyrocketing COVID-19 cases that are leading to new restrictions and undermining hopes economic activity can return to normal soon.

Federal Reserve Chair Jerome Powell highlighted the need for caution, noting “significant challenges and uncertainties” about the timing, production, distribution, and efficacy of the vaccines.

“With the virus now spreading at a fast rate, the next few months may be very challenging,” Powell said in a discussion. “So it’s probably too soon to say with any confidence what the impact on the path of the economy will be from the vaccines.”

Commerce Department data showed retail sales in October increasing by a disappointing 0.3 percent from September.

The data indicate slowing growth in a sector that bounced back from the pandemic downturn faster than most others thanks to massive government assistance that kept consumers flush.

Analysts also noted that stocks have already risen significantly this month and were due for a pause or pullback.

“It doesn’t seem that the market is really in any danger of giving back any serious gain,” Peter Cardillo of Spartan Capital told AFP. 

Amazon edged up 0.1 percent after it said it would set up an online pharmacy, which sent CVS Health slumping 8.6 percent and Walgreens Boots Alliance plunging 9.6 percent. 

Tesla surged 8.2 percent in the first trading session since S&P Dow Jones Indices said the electric car company officially qualified to join the prestigious S&P 500.

Image by Juan Salmoral

Be First to Comment

Leave a Reply