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- U.S. stocks gained Tuesday as vaccine advances further boosted stocks hardest hit by the pandemic. The S&P 500 and Nasdaq composite hit record levels.
- Investors have applauded Pfizer and BioNTech’s request for regulatory approval of their coronavirus vaccine in the European Union. If approved, the snapshot could be distributed before the New Year.
- Federal Reserve Chairman Jerome Powell warned of lingering risks to the U.S. economy during a Senate Banking Committee hearing. The comment did little to reduce investors’ uptrend
- Bitcoin fell 6.3%, to $ 18,157.38, before climbing back above $ 19,000. The coin hit a new all-time high of $ 19,914.33 early Tuesday morning.
- West Texas Intermediate crude fell 2.7% to $ 44.12 a barrel.
- Watch the main index update live here.
U.S. stocks rose on Tuesday as vaccine advances continued to drive up stocks worst hit by the coronavirus pandemic. The S&P 500 and Nasdaq composite closed at record levels.
Pfizer and BioNTech have requested regulatory approval for their vaccine in the European Union; if approved, the shot could begin distribution before the new year.
Optimism about vaccine deployments continues to shift investor liquidity from growth stocks to riskier sectors of the market like value stocks and cyclical sectors. Communications, financials and tech stocks drove the S&P 500 to its intraday high, while consumer staples and industrials underperformed.
Here’s where the U.S. indices were at the 4 p.m. ET close on Tuesday:
Read more: Shelby Osborne achieved financial freedom using a unique twist on a classic real estate investing strategy. Here’s how she built a portfolio of 53 units, starting in her twenties.
The testimony of Federal Reserve Chairman Jerome Powell and Treasury Secretary Steven Mnuchin before the Senate Banking Committee did little to quell bullish sentiment. Powell highlighted the economic risks of the coronavirus resurgence, adding that a protracted battle with the virus will leave significant scars.
“The increase in new cases of COVID-19, here and abroad, is concerning and could prove difficult for the next few months,” he said in remarks released ahead of the hearing. “A full economic recovery is unlikely until people are convinced that it is safe to re-engage in a wide range of activities.”
Central bank officials will then meet on December 15-16 to discuss Fed policy.
The market rise retraced Monday’s losses and drove stocks uptrend in December. Stocks fell early in the week as investors turned profit. The major indices have again recorded historic monthly gains, in large part thanks to encouraging vaccine news as COVID-19 cases have skyrocketed.
Read more: HSBC says it is buying these 31 global stocks which are exposed to the biggest technological disruptions of the pandemic and which are expected to become growth engines of the future
The earlier month’s rise suggests the uptrend will persist through the end of the year, but downside risks persist. Daily cases of coronavirus remain at high levels. As Congress reconvened to negotiate a new stimulus deal, no proposal has garnered support from the two party leaders.
These factors, “along with the market’s history of more subdued performance in the month following a double-digit return, may lead to market turmoil in the near term,” said Lindsey Bell, chief investment strategist. at Ally Invest.
BlackBerry made the most progress in history after the company announced a multi-year agreement with Amazon to develop and market BlackBerry’s “intelligent vehicle data platform”. The cloud computing platform allows automakers to record data from vehicle sensors and improve systems, according to a press release.
Tesla won after the S&P Dow Jones Indices said the automaker would be added to the S&P 500 in a single step on December 21. A multi-step process to include Tesla in the index had been envisioned.
Read more: Buy these 10 stocks that will explode and shatter Wall Street expectations in COVID-19 recovery, says RBC
Zoom Video fell after guiding slower sales growth through the end of the year. Although the company’s third-quarter report beat Wall Street estimates, the subdued growth has led some to question whether the stock’s 200% rally from the market’s low in March was sustainable.
Bitcoin fell to $ 18,157.38 before erasing losses and climbing back above $ 19,000. The cryptocurrency hit an all-time high of $ 19,914.33 early Tuesday morning before oversized sales hampered the rally.
Spot gold jumped 2.3% to $ 1,817.37 an ounce. The US dollar weakened against the majority of the Group of 10 peers, and yields on Treasuries rose sharply.
Oil prices fell as OPEC members deliberated on postponing a production hike scheduled for January. West Texas Intermediate crude fell 2.7% to $ 44.12 a barrel. Brent, the international benchmark for oil, fell 2.1% to $ 46.88 per barrel, at intraday lows.
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