U.S. stocks end mostly lower after an early rally fizzles
“Wait-and-see mode” as vaccinations begin and aid talks continue
Stocks closed mostly lower on Wall Street Monday after an early rally faded, extending the market’s recent pullback from record highs.
The S&P 500 fell 0.4 percent after having been up 0.9 percent in the early going. The reversal handed the benchmark index its fourth straight decline, something that hasn’t happened since
September. Losses in the financial, industrial and health care sectors accounted for much of the decline, outweighing gains by technology stocks and companies that rely on consumer spending. Treasury yields were mostly higher, a sign of optimism in the economy.
Stocks initially headed higher as Americans began receiving the country ’s first vaccinations against COVID -19, a process that’s expected to take months. Meanwhile, investors are still waiting to see whether Congress can break a logjam on delivering more aid to people, businesses and local governments affected by the coronavirus pandemic.
They’re also monitoring talks on reaching a trade deal between Britain and the European Union.
“To a large degree, we’re in a wait-and-see mode,” said Terry Sandven, chief equity strategist at U.S. Bank Wealth Management. “The good news is the vaccine is being distributed, which suggests we’re on the road to recovery.”
The S&P 500 fell 15.97 points to 3,647.49. The index declined 1% last week, its worst weekly performance since Halloween.
The Dow Jones Industrial Average dropped 184.82 points, or 0.6%, to 29,861.55. The
Nasdaq rose 62.17 points, or 0.5 percent, to 12,440.04. Smaller companies held up better than their larger rivals, an indication that investors are feeling more confident about the economy’s prospects. The Russell 2000 index gained 2.16 points, or 0.1 percent, to 1,913.86.
Hospital workers are unloading the first batches of a coronavirus vaccine developed by Pfizer and its German partner, Biontech, following its approval for emergency use by U.S. regulators. Health care workers and nursing home residents will be first in line for vaccinations, and the hope in markets is that a wider rollout next year will help pull the economy back toward normal following its devastation this year.