Banks and technology companies led a broad slide for stocks Tuesday on Wall Street, snapping the market’s four-day winning streak.
The S&P 500 lost 0.6%, giving back some of its gains from a day earlier. The pullback came as many forces are pushing and pulling on markets simultaneously. Coronavirus counts are rising at a worrying rate in many countries, a trend that’s increasing the urgency behind efforts to develop treatments.
On Tuesday, independent monitors paused enrollment in a study testing the covid-19 antiviral drug remdesivir plus an experimental antibody therapy being developed by Eli Lilly. The company said the study was paused “out of an abundance of caution.” The news followed a disclosure late Monday by Johnson & Johnson, which said it had to temporarily pause a late-stage study of a potential covid-19 vaccine “due to an unexplained illness in a study participant.”
The S&P 500 fell 22.29 points to 3,511.93. The Dow Jones Industrial Average dropped 157.71 points, or 0.55%, to 28,679.81. The Nasdaq composite gave up an early gain, slipping 12.36 points, or 0.1%, to 11,863.90.
Meanwhile, uncertainty about the prospects for more stimulus for the economy from Washington continues to hang over markets.
“Absent of getting any kind of fiscal stimulus, we’ve already seeing a leveling off in economic growth and some weakening under the surface, ” Liz Ann Sonders, chief investment strategist at Charles Schwab. “There’s concern that without that additional fiscal stimulus the economy could run into a little bit of trouble here.”
Stocks have been mostly pushing higher this month. Already the major stock indexes have recouped their losses from September’s market swoon.
Tuesday’s market slide came as the third-quarter earnings reporting season got underway. Investors will be looking for some measure of clarity over