Stocks close mostly lower, pushing pause on recent rally
Stocks closed mostly lower Monday as Wall Street pumped the brakes after a recent run of strong gains.
The S&P 500 fell 0.2%, as losses in health care, financial and energy companies outweighed gains in technology, communication and utilities stocks. The pickup in technology companies, whose profits have proven more resistant to the pandemic’s effect on the economy, helped nudge the Nasdaq composite to its third consecutive all-time high.
Investors are optimistic that one or more coconravirus vaccines will soon be cleared for distribution in the U.S., setting the stage for an economic turnaround. But worries are mounting about more economic pain as states impose new restrictions on businesses in a bid to stem a surge in virus cases and hospitalizations.
Traders also continue to hold out hope that Washington will deliver another round of financial aid for Americans and businesses hurt most by the pandemic.
“The market is taking a much needed pause as it waits for answers on the stimulus package,” said Quincy Krosby, chief market strategist at Prudential Financial. “Will it be closer to a trillion or closer to $500 billion? That’s going to be important for the market.”
The S&P 500 dropped 7.16 points to 3,691.96. The Dow Jones Industrial Average slid 148.47 points, or 0.5%, to 30,069.79. The Nasdaq gained 55.71 points, or 0.4%, to 12,519.95. Small company stocks slipped 1.20 points, or 0.1%, to 1,891.25.
The benchmark S&P 500 had one of its best months in decades during November and added more to it last week. In addition to virus vaccine optimism, hope has built that Washington may be able to get past its partisanship to deliver some form of aid for the still-struggling economy.
The worsening pandemic is pushing governments around the world to bring back varying degrees restrictions on businesses, keeping customers away from businesses and threatening to drag down the economy through what’s expected to be a bleak winter.