U.S. stocks end mostly lower after early rally evaporates

Stocks ended mostly lower on Wall Street Monday after an early rally evaporated.

In the U.S. investors are waiting to see if Congress can break a logjam on delivering more aid to people, businesses and local governments affected by the coronavirus pandemic, while in Europe talks continue on a trade deal between Britain and the European Union.

The S&P 500 slipped 0.4%. The index is coming off its worst weekly performance since Halloween, and extended its losing streak to four consecutive trading days.

“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.”

Hospital workers are unloading the first batches of a 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

Such optimism has helped Wall Street’s rally broaden out beyond Big Tech stocks, which were pulling the market higher earlier in the pandemic. Many of the stocks climbing Monday included companies that desperately need the economy to get healthier and reopen.

“The market is really looking ahead six months and, now that the vaccine is being rolled out, hope has become reality,” said Marc Chaikin, founder of Chaikin Analytics.

Smaller companies rose more than their larger rivals, an indication that investors are feeling more confident about the economy’s prospects. The Russell 2000 index of smaller stocks gained 0.5%.