“The things that are obvious to us are that small businesses are closing and unemployment remains high in the services sector. The Fed aggressively wants to address both of those with more fiscal stimulus.”
Comments from officials that a stimulus deal was still possible had lifted the three main stock indexes on Monday, helping them recoup losses from last week that were sparked by news that President Donald Trump had contracted COVID-19.
Trump said on Tuesday he felt “real good” upon returning to the White House after a three-day hospital stay where he received an experimental treatment for the disease.
Six of the 11 major S&P sectors were up, with the battered energy index tracking a 2 per cent jump in oil prices.
A rotation into value-linked sectors such as industrials helped boost the blue-chip Dow, but the Nasdaq slipped further away from record highs following a dip in shares of heavyweight technology mega-caps.
Amazon.com, Apple, Facebook and Google-owner Alphabet slid lower earlier in the session after news about a US House of Representatives’ antitrust report containing a “thinly veiled call to break up” the companies.
“When you’re in bubble territory with higher volatility, the market is very much driven by sentiment,” said Matt Hanna, portfolio manager at Summit Global Investments.
“The sentiment has shifted a little bit, it’s not nearly as bullish as it was just a couple months ago.”
Boeing fell 3.4 per cent after the planemaker cut its rolling 20-year forecast for airplane demand due to the fallout from the COVID-19 pandemic.
US-listed shares of BioNTech jumped 8 per cent after the European health regulator said it had started a real-time review of the COVID-19 vaccine being developed by the German biotech firm and US drugmaker Pfizer. Pfizer’s shares dipped 0.1 per cent.
Shares of audio device makers Sonos and Logitech fell 6.8 per cent and 5.1 per cent, respectively, after their speakers were removed from Apple’s online stores.
Advancing issues outnumbered decliners almost 2-to-1 on the NYSE and the Nasdaq.
The S&P index recorded 25 new 52-week highs and no new low, while the Nasdaq recorded 97 new highs and nine new lows.
A Global Asset Management Seoul Korea Magazine