Wall Street snapped a four-day winning streak on Tuesday, with a halted COVID-19 vaccine trial and an elusive U.S. stimulus agreement weighing on sentiment as third quarter earnings season kicked off.
FILE PHOTO: A Wall Street sign is pictured outside the New York Stock Exchange in the Manhattan borough of New York City, New York, U.S., October 2, 2020. REUTERS/Carlo Allegri 13 Oct 2020 09:40PM(Updated: 14 Oct 2020 02:30AM) Share this content
NEW YORK: Wall Street snapped a four-day winning streak on Tuesday, with a halted COVID-19 vaccine trial and an elusive U.S. stimulus agreement weighing on sentiment as third quarter earnings season kicked off.
All three major U.S. stock indexes slipped into the red by mid-afternoon.
Johnson & Johnson announced on Monday it was pausing clinical trials of a COVID-19 vaccine candidate due to an unexplained illness in a study participant. The delay weighed on the company’s shares, even after its beat-and-raise earnings report. Its shares were last off 2.5per cent.
“It shows once again that the vaccine is still far away, and it’s a good thing that so many pharmaceutical companies are working on it,” said Oliver Pursche, president of Bronson Meadows Capital Management in Fairfield, Connecticut. “JNJ looked promising just a few weeks ago and now here’s a complete turnaround.”
Hopes for the passage of a new coronavirus relief package faded as U.S. House Speaker Nancy Pelosi rejected the US$1.8 trillion coronavirus relief proposal from the White House, saying it “falls significantly short of what this pandemic and deep recession demand.”
Meanwhile, millions of Americans struggle to make ends meet nearly two-and-a-half months after emergency unemployment assistance expired.
JPMorgan Chase & Co and Citigroup Inc were the first two major