Weakness in tech companies leads stocks lower on Wall Street

Stocks are closing broadly lower on Wall Street led by weakness in technology companies. The S&P 500 fell 0.8% Wednesday, easing the benchmark index below the record high it set a day earlier. Health care and communications companies also slipped. Investors have been balancing hopes for approvals and distribution of coronavirus vaccines against a near-term surge in cases and hospitalizations. Investors are still closely watching Washington, where talks are still ongoing on providing more relief to American people and businesses impacted by the pandemic. Congress is still divided over the size and scope of any new package.

A vaccine from Pfizer and German partner BioNTech, which is already in use in the U.K., is on track for a positive review and potential approval in the U.S. within the next week. The Food and Drug Administration will also consider a vaccine developed by Moderna later this month. The prospect for a vaccine is giving Wall Street hope that the economy is nearing a more direct path to a full recovery.

But there could be more economic damage in store over the next few months and investors are still closely watching Washington for any developments on another shot of stimulus for people, businesses and state governments. Congress is still divided over the size and scope of any new package and the Trump administration has added to the potential plans with a new $916 billion proposal.

The S&P 500 was down 0.9% in afternoon trading, putting it below its record of 3,702.25 set on Tuesday. The index is already up 1.3% this month following one of its best months in years during November.

The Dow Jones Industrial Average was down 150 points, or 0.5%, at 30,023, as of 2:42 p.m. Eastern time, and the tech-heavy Nasdaq composite was 2% lower.

Technology stocks fell and dragged much of the market with them. Health care and communications stocks also slipped. Microsoft shed 1.7% while Pfizer Inc. fell 1.8%.

About 63% of the companies in the S&P 500 fell, led by Qorvo, which declined 5.2%.

Treasury yields gained ground in a sign of optimism for the the economy. The yield on the 10-year Treasury rose to 0.93% from 0.90% late Tuesday.

Investors still have an appetite for IPO’s as meal delivery service DoorDash soared 78% in its market debut. The company has been one of the beneficiaries of the stay-at-home economy as more people shop and order food from their homes.