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Dow slides 200 points after breaking 30,000 milestones

US stocks fell on Wednesday as Wall Street took a breather after a historic backlash above the Dow Jones Industrial Average for the first time above $ 30,000.

The Stock Index fell by 200.82 points (about 0.6%) per day to 29,845.42 after crossing the 30,000 threshold and jumping to a daytime high of 30,116.51. Benchmark S & P 500, which also hit a record high on Tuesday, fell by about 0.5%, while technology-intensive Nasdaq surged 0.3%, approaching a record high during the day.

The move has shown that investors are fixing some profits before Thanksgiving holidays, rather than abandoning the bright prospects that fueled Tuesday’s rally.

“This does not mean that the market has made a mistake,” said Prudential Financial’s chief market strategist, Kunisy Crosby. “We are looking to 2021. At some point in 2021, we are on the other side of the pandemic.”

Wall Street is increasingly optimistic that pharmaceutical companies such as Pfizer and Moderna will offer multiple safe and effective coronavirus vaccines by the end of the year. This is an important step for the global economy to recover from a pandemic recession.

President Trump has also lifted investors’ mood by officially allowing President-elect Joe Biden to begin the transition to the White House and calming concerns over Washington’s political instability.

But the U.S. Department of Labor made it a reality on Wednesday by reporting that 778,000 Americans applied for unemployment benefits last week. This far exceeds the economist’s expectation of 730,000. Blockade measures caused by the nationwide surge in COVID-19 cases have put pressure on the fragile recovery of the labor market in recent weeks.

According to market observers, Wall Street is closely watching the vaccine approval and distribution process. This may relieve some of that pressure. Pfizer last week asked the Food and Drug Administration to clear the shot for emergency use, and the federal government said the vaccine could be deployed in the second week of December.

“Market sentiment remains positive, but investors are waiting for the next big catalyst that could push the stock market even further,” said Milan Katkovich, a market analyst at Axis. .. “The results of the COVID-19 vaccine are great news, but they are now priced.”

Dow slides 200 points after breaking 30,000 milestones

Source link Dow slides 200 points after breaking 30,000 milestones

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