Stocks that stormed higher this month on hopes that a vaccine or two may get the global economy back to normal next year receded amid the worries, particularly energy producers, banks and other companies that would benefit most from a reopening economy.
The S&P 500 was down 0.8% in morning trading, on pace for its first drop in three days. The Dow Jones Industrial Average was also pulling lower from its record high, and it was down 317 points, or 1.1%, at 29,633, as of
Sharp losses for companies in the pharmacy business helped drag the market lower after Amazon targeted them as the latest industry it’s trying to upend. The retailing behemoth opened an online pharmacy Tuesday that allows customers to have prescriptions delivered to their door in a couple days.
On the winning side was
The electric-vehicle company had already soared 388.8% in 2020 before Monday evening’s index announcement. It’s grown so massive that the company behind the S&P 500 is asking investors whether they think it should add
The broader stock market was slowing Tuesday, though, and 85% of stocks in the S&P 500 were lower.
Energy companies fell 1.8% for the biggest loss among the 11 sectors that make up the index. They tend to move sharply with expectations for the economy, and crude oil prices fell as expectations for demand diminished.
Financial stocks also have been moving with expectations for an economy unencumbered by the virus, one where workers can get jobs again and make good on all their loans.
Sales at
Part of the shortfall is likely because laid-off workers are no longer getting extra unemployment benefits from the
That’s layering on top of the already accelerating pandemic, which is pushing governments across
That’s all helped dilute some of the optimism that’s rushed through markets since early last week. Companies have released encouraging early results for a couple potential COVID-19 vaccines, which is raising hopes that the economy can get back to normal and stocks beaten down during the pandemic can roar back to life. Even with Tuesday’s decline, the S&P 500 is still up about 10% for November so far. That’s better than any monthly performance for the index since April, when stocks were exploding higher following their pandemic-induced plunge.
The yield on the 10-year
In
In
AP Business Writer
Copyright 2020 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed without permission., source