Dow closes greater than 150 factors decrease as fears of recent lockdowns mount
The Dow Jones Industrial Average and S&P 500 fell Monday as fears of additional Covid-19 restrictions offset optimism about a vaccine launch.
The 30-share Dow closed 184.82 points, or 0.6%, at 29,861.55. At its session high, the Dow rose more than 200 points to hit an all-time high. The S&P 500 was down 0.4% to 3,647.49 and had its first four-day winning streak since September 21. The Nasdaq Composite outperformed, rising 0.5% to 12,440.04.
New York Mayor Bill De Blasio warned earlier in the day that the city could soon see a “complete shutdown”. His comments put pressure on the Dow and S&P 500.
“We are seeing the type of coronavirus infection that we haven’t seen since May and we have to stop this dynamic or our hospital system will be threatened,” said de Blasio.
Other parts of the United States 1 as well as other countries have already implemented stricter social distancing measures. In the UK, the country’s health minister said London would be placed in the toughest tier of England’s Covid-19 restrictions.
“These are locks that are affecting global growth,” said Quincy Krosby, chief market strategist, Prudential Financial. “The question now is how many states are left [and countries] Introduce bans. “
Stocks of companies that would benefit from the reopening of the economy lagged those companies that did well at the start of the pandemic. United Airlines fell 3.4%. Meanwhile, Amazon gained 1.3%.
De Blasio’s warning came when the US began rolling out a coronavirus vaccine developed by Pfizer and BioNTech in hundreds of distribution centers across the country. The first dose of the vaccine was given in New York City on Monday. The FDA is expected to publish its assessment of Moderna’s vaccine this week.
“We anticipate that effective COVID-19 vaccines will be widespread in the second quarter of 21 to help a return to more normal economic and social activities,” said Mark Haefele, chief investment officer at UBS Global Wealth Management, in one Note. “Even with the … rally in global equities since early November, we believe there will be more benefits.”
The Covid-19 vaccine launches on some of the darkest days of the pandemic in the United States. More than 300,000 coronavirus-related deaths have been confirmed in the United States. Over 16 million cases have been reported in the United States
Meanwhile, Washington lawmakers tried again to push a new coronavirus stimulus package.
A non-partisan group of Congressmen are planning to release a $ 908 billion stimulus package. However, some important disagreements persist between the two parties, particularly over state and local state aid.
“It is very clear that the economy is slowing as the local stalemate persists, but the impact on the stock market has so far been limited. Whether this will continue through Q1 is unclear, but we expect withdrawals to be limited Unless the vaccine changes significantly, history will be, “Tavis McCourt, institutional equity strategist at Raymond James, told clients in a note.
Subscribe to CNBC PRO for exclusive insights and analysis as well as live business day programs from around the world.