Major Stock Indexes Hover Near Record Highs on Wall Street

US stocks open lower after strong

US stocks open lower after strong

The benchmark index was up 0.9% in the early going Tuesday, putting it on track for another record high after a weak showing a day earlier.

The Dow Jones Industrial Average, which has far less impact on 401 (k) accounts than the S&P 500 does, had its best month since 1987.

Pfizer and BioNTech said they've won permission for emergency use of their COVID-19 vaccine in Britain, the world's first coronavirus shot that's backed by rigorous science and a major step toward eventually ending the pandemic. Treasury yields rose as investors became more optimistic about the economy.

Positive updates on coronavirus vaccine have helped investors raise bets on a swift economic rebound next year, powering the Wall Street's main indexes to life-highs recently.

Republicans and Democrats in Congress remained unable to reach agreement on fresh relief for a pandemic-hit US economy, although some investors said bad economic news could spur policy makers to push harder for a deal.

The S&P 500 posted 18 new 52-week highs and no new lows; the Nasdaq Composite recorded 89 new highs and 12 new lows.

Unemployment remains high as the COVID-19 outbreak widens the gulf between average people and the wealthiest Americans. Payroll processor ADP said Wednesday that private US employers added 307,000 jobs last month. Economists are forecasting that will show employers added about 441,000 jobs in November, down from a gain of 638,000 in October.

McConnell Rejects New Bipartisan Coronavirus Relief Proposal
Joe Manchin, D-W.Va., Mark Warner, D-Va., Michael Bennet, D-Colo., and Dick Durbin, D-Ill., the Senate's No. 2 ranking Democrat. Susan Collins of Maine, Lisa Murkowski of Alaska, and Bill Cassidy of Louisiana, as well as Democratic Sens.

Any potential sign of a worsening labor market in Friday's broader jobs report could put more pressure on Congress to agree on a stimulus package, said Ross Mayfield, an investment strategy analyst at Baird.

President-elect Joe Biden has also called on lawmakers to pass immediate pandemic relief funding even before he takes office.

In the corporate space, Salesforce announced overnight that it would be acquiring messaging platform Slack for $27.7bn, the company's largest-ever deal. The companies have already asked for approval to begin vaccinations in the December.

A rotation into value stocks continued on Wednesday with banks and energy stocks leading gains, while market leaders technology dropped 0.5%.

In congressional testimony delivered on Tuesday, Powell called the US economic outlook "extraordinarily uncertain", noting that the rise in new COVID-19 cases "is concerning and could prove challenging for the next few months". The yield on the 10-year Treasury rose to 0.96% from 0.92% late Tuesday.

The Dow is up 1,100.20 points, or 3.9%. Markets in Asia were mixed.

Recommended News

We are pleased to provide this opportunity to share information, experiences and observations about what's in the news.
Some of the comments may be reprinted elsewhere in the site or in the newspaper.
Thank you for taking the time to offer your thoughts.