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Market Rally Pauses as COVID Cases Surge

Tech stocks were the exception
By Newser Editors and Wire Services
Posted Dec 7, 2020 3:43 PM CST

(Newser) – Stocks are closing mostly lower on Wall Street Monday, taking a pause from their recent rally. The S&P 500 lost 0.2%. Companies that would benefit most from a reopening economy, like banks and industrial stocks, took some of the sharper losses. Technology stocks, meanwhile, bucked the downward trend and rose, pushing the Nasdaq to another record high. It’s a flip of the market’s recent momentum and a callback to how it was trading earlier this year, before enthusiasm burst higher that one or more COVID-19 vaccines will get the global economy closer to normal next year, the AP reports. The Dow Jones Industrial Average dropped 148.47 points, or 0.49%, to 300069.79. The S&P 500 fell 7.16 points to 3691.96. The Nasdaq rose 55.71 points, or 0.45%, to 12,519.95.

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Stocks that would benefit most from a reopening, healthier economy were taking some of the sharper losses, giving back some of their big recent gains. Energy stocks in the S&P 500 were down 2.6% after their 16.8% surge in November, for example. Bank stocks were also weaker than the rest of the market, and roughly two-thirds of the stocks in the S&P 500 were lower. Technology companies, whose profits have proven more resistant to the pandemic’s effect on the economy, were holding steadier. Apple was up 1.4%. Frank Panayotou, managing director at UBS Private Wealth Management, says that while the markets are likely in good shape for the medium or long-term, investors can expect some choppiness as the the virus' impact continues ahead of vaccines reaching people next year.

(Read more stock market stories.)

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