- US stocks fluctuated on Tuesday as momentum from Monday's massive rally extended the shift from expensive tech giants to small-cap and cyclical stocks.
- The tech-heavy Nasdaq composite sank, while the Dow Jones industrial average and the small-cap-focused Russell 2000 climbed.
- While Pfizer and BioNTech's Monday vaccine update revived investors' risk appetites, soaring COVID-19 case counts in the US cut into some optimism.
- Oil prices continued to climb and retook their $40-per-barrel support. West Texas Intermediate crude gained as much as 1.8%, to $41.02 per barrel.
- Watch major indexes update live here.
US equities fluctuated on Tuesday as momentum fizzled and investors pivoted from growth favorites to small-cap and cyclical stocks.
Pfizer and BioNTech's encouraging vaccine update, which fueled a massive stock surge on Monday, continued to drive a shift out of expensive tech stocks and into plays more likely to outperform in an economic reopening. The tech-heavy
"With a viable vaccine apparently on the horizon, it may be time to take a second look at your portfolio," said Lindsey Bell, the chief investment strategist for Ally Invest. "Stocks that could benefit from a return to normal life — or the 'reopening trade' — could be worth watching over the coming weeks."
Here's where US indexes stood shortly after the 9:30 a.m. ET open on Tuesday:
- S&P 500: 3,548.06. down 0.07%
- Dow Jones industrial average: 29,423, up 0.57% (145 points)
- Nasdaq composite: 11,640, down 0.62.%
The Dow and the
Pfizer and BioNTech announced Monday that their experimental coronavirus vaccine was found to be more than 90% effective at preventing COVID-19 in a late-stage trial. The companies now plan to apply for emergency use authorization with the US Food and Drug Administration to expedite the rollout of their vaccine. The announcement suggests a breakthrough in the race to find a viable vaccine and spurred hope on Wall Street that the pandemic might be contained sooner than previously expected.
Whether it could arrive soon enough to avoid additional economic damage is a different story. The US reached 10 million COVID-19 cases on Monday as infection rates spiked across the country. The Federal Reserve said in a Monday report that an inability to contain the outbreak could tank asset prices across risk markets.
Spot gold climbed as much as 1.5%, to an intraday high of $1,890.53 per ounce. The US dollar wavered, and Treasury yields ticked higher.
Bitcoin traded just below $15,300 after failing to break above $16,000 in its prolonged rally. The cryptocurrency's recent momentum has mostly stalled since it traded above $15,000.
Oil prices continued to climb, retaking their $40-per-barrel support level. West Texas Intermediate crude gained as much as 1.8%, to $41.02 per barrel. Brent crude, oil's international benchmark, jumped 2.1%, to $43.28 per barrel, at intraday highs.
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