Wall Street tumbles after strong recovery as COVID-19 boxes go up

(Reuters) – US stocks fell Tuesday, adding to closing losses as investors took profits a day after the S&P 500 had its longest streak of gains this year and new cases of coronavirus in the United States continued to increase.

Large parts of the United States have reported tens of thousands of new coronavirus infections. New York has extended its travel quarantine to visitors from three other states, while the greater Miami area of ​​Florida has canceled its reopening.

“This is a bit of a setback after a significant five-day market development coupled with normal worries about the virus and (Cleveland Federal Reserve Bank Loretta) Mester speaking of a long way to recovery,” said said Michael Antonelli, market strategist at Baird in Milwaukee.

Mester said in an interview with CNBC that a resurgence of coronavirus cases across the country is making consumers more cautious and that more tax incentives are needed to help the economy recover fully from the crisis.

US stocks recently rose as the S&P 500 posted its fifth consecutive gain on Monday, despite the increase in new cases of coronavirus in the United States, as a plethora of optimistic data for June confirmed that an economic recovery was underway. Classes.

The Nasdaq claimed a new intraday record and maintained gains for much of the session before ending the day down.

The Dow Jones Industrial Average .DJI fell 396.85 points, or 1.51%, to 25,890.18, the S&P 500 .SPX lost 34.4 points, or 1.08%, to 3,145.32 and the Nasdaq Composite .IXIC fell 89.76 points, or 0.86%, to 10,343.89.

Also read:  Investors bet vaccine sparks revival in beaten down stocks

“It is healthy to have withdrawals. Even more dramatic withdrawal would be good, just because I think there is a lot of uncertainty and it is sort of advanced on a wall of concern here, “said Alan Lancz, President of Alan B Lancz & Associates Inc., an investment advisory firm, based in Toledo, Ohio.

“There is probably more profit taking and lower store volatility after the incredible rebound in March lows,” he said.

The S&P 500 is still up over 40% from its closing low in March.

Walmart Inc (WMT.N) gained 6.8% after a report that the retailer is about to launch its membership program, a direct competitor to the Prime Service of (AMZN.O). Amazon shares fell 1.3%.

Novavax Inc (NVAX.O) jumped 31.6% as the US government awarded the drug manufacturer $ 1.6 billion to cover the testing, marketing and manufacturing of a potential coronavirus vaccine in the country.

Earlier on Tuesday, the S&P 500 EScv1 e-minis unleashed a “golden cross” model, when the 50-day moving average exceeded the 200-day moving average, which could herald more gains for short-term stocks. .

Declining issues outnumbered rising ones on the NYSE by a ratio of 2.73 to 1; on the Nasdaq, a ratio of 2.63 to 1 favored the decliners.

The S&P 500 posted 32 new highs over 52 weeks and no new lows; the Nasdaq Composite recorded 83 new highs and 15 new lows.

The volume of American exchanges was 10.44 billion shares, against 12.58 billion on average for the full session of the last 20 trading days.

Source: Reuters

Leave a Reply

Your email address will not be published. Required fields are marked *