Summary List Placement
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 Nasdaq composite slumped, while Dow Jones industrial average and the small-cap-focused Russell 2000 gained. Popular stay-at-home plays including Netflix, Zoom, and Amazon continued to fall as investors bet on near-term vaccine distribution. "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.%
Read more: Morgan Stanley's top cross-asset strategist pinpoints 3 areas of the market set to directly benefit from a successful COVID-19 vaccine - and explains why investors may be 'surprised' by the level of normalcy we can achieve The Dow and the S&P 500 leaped to record intraday highs on Monday. Pfizer's update lifted investors' risk appetites and kicked off the week's rotation to cyclical names. Reopening trades such as airlines, cruises, and hotels gained. Gold tumbled the most in three months as investors ditched safe-haven assets. 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. Read more: Goldman Sachs combed through hundreds of earnings transcripts to arrive at the 4 themes S&P 500 companies embraced this quarter — and shared the dozens of stocks set to benefit from these thematic trends 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. Now read more markets coverage from Markets Insider and Business Insider: 'Market nirvana': JPMorgan says the S&P 500 will surge another 11% by early 2021 as the market faces its best backdrop in years US GDP will be back to pre-pandemic levels by mid-2021 under a Biden presidency and as vaccine progress continues, Goldman says 38 units, retired at 27, and over $10,000 in monthly passive income: Here's how Rachel Richards leveraged a simple real-estate investment strategy into an income-generating empireJoin the conversation about this story » NOW WATCH: Why it's okay to eat the brown part of an avocado
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