Steady gains for stocks deliver more records on Wall Street
Technology and health care companies helped drive stocks to more gains Tuesday, leading to another round of milestones on Wall Street.
The S&P 500 index rose 0.3%, eclipsing the all-time high it set on Friday. The Nasdaq composite and Russell 2000 index of small company stocks also set record highs. The likelihood that one or more coronavirus vaccines could begin to be distributed in the U.S. in coming weeks has kept investors in a buying mood, boosting their optimism for an economic recovery next year.
The gains, which followed a shaky start for the market, came as the U.K. became the first Western country to start a mass vaccination program. On Tuesday, U.S. health regulators issued a positive initial review of a COVID-19 vaccine developed by U.S. drugmaker Pfizer and Germany’s BioNTech. A decision to allow its use is expected within days, though wide distribution is likely months away.
The S&P 500 rose 10.29 points to 3,702.25. The index had one of its best months in decades during November and is already up 2.2% so far this month. The Dow Jones Industrial Average gained 104.09 points, or 0.4%, to 30,173.88. The tech-heavy
Nasdaq picked up 62.83 points, or 0.5%, to 12,582.77, marking its fourth straight record high.
Small-company stocks rose much more than the rest of the market, a signal that investors are feeling more optimistic about the economy. The Russell 2000 index climbed 26.53 points, or 1.4%, to 1,917.78.
Nearly 60% of the companies in the benchmark S&P 500 closed higher, with energy stocks notching the biggest gain. Stocks had been down in the early going on worries about rising coronavirus cases, but turned higher around midday. Traders are looking ahead to Thursday, when
U.S. regulators will meet to determine whether to green-light the distribution of the vaccine developed by Pfizer and BioNTech.
The need for a vaccine has been heightened in recent weeks as the coronavirus has been surging across much of the world. The virus has claimed more than 1.5 million lives, including over 284,000 in the U.S., the highest toll of any country. Governments worldwide have been tightening restrictions on businesses in an effort to stem the latest surge in cases, stoking worries about the potential economic fallout.
That’s kept investors focused on
Washington and the prospects for another round of aid for Americans and business hit hardest by the pandemic. Congress is still stuck in a partisan stalemate over the size and scope of any additional aid to help cushion the financial impact to people and businesses. The economy has been showing signs of a stalled recovery as the virus surge broadens nationally, including slower job growth in the U.S. last month.
Big Tech stocks that have been big winners during the pandemic helped power the rally Tuesday. Apple rose 0.5% and Microsoft gained 0.8%.
Health care stocks made solid gains. Pfizer rose 3.2% and Johnson & Johnson rose 1.7%. Exxon Mobil was among the big gainers in the energy sector, climbing 3.3%.
A mix of companies that rely on direct consumer spending and those that would greatly benefit from a fuller economic recovery continued to see a bit of churn. The moves reflect the constant push-and-pull of hope for an eventual economic recovery pitted against the continued economic damage inflicted by the pandemic.
The yield on the 10-year Treasury rose to 0.92% from 0.91% late Monday.