Wall Street retreats after four-day winning streak as J&J vaccine…

(Reuters) – The Dow and the S&P 500 fell on Tuesday after a four-day winning streak as a pause in Johnson & Johnson’s COVID-19 trial triggered concerns about the timing of a vaccine, although a rally in technology shares supported the Nasdaq.

Johnson & Johnson shed 2% as it said it would take “a few days” to review its halted clinical trial following an unexplained illness in a study participant, possibly delaying results on one of the most closely watched efforts to contain the global pandemic.

The S&P healthcare index slipped from a record high hit in the prior session and weighed on broader markets as vaccines are seen critical to stopping the pandemic, which has driven the economy to its worst recession in decades.

Some of the worst-hit companies due to the pandemic – cruise line operators Carnival (NYSE:CUK) Corp, Norwegian Cruise Line (NYSE:NCLH) Holdings and hotel operator Wynn Resorts (NASDAQ:WYNN) Ltd – fell between 3% and 7%.

The J&J news is “an excruciating reminder of the difficulties that the coronavirus has brought on the economy,” said Eric Schiffer, chief executive officer of private equity firm Patriarch Organization.

Adding to the negative tone, U.S. House Speaker Nancy Pelosi rejected President Donald Trump’s latest offer on COVID-19 stimulus, the latest sign that a bipartisan deal on coronavirus relief remains unlikely ahead of the November election.

Hopes of more U.S. fiscal aid and a rally in tech heavyweights led stocks higher on Monday, bringing the benchmark S&P 500 and the tech-heavy Nasdaq within 2% of their record highs hit in September after a pullback last month.

Apple Inc (NASDAQ:AAPL) slipped 1.1% ahead of a virtual event starting 1 p.m. ET (1700 GMT) where it is widely expected to unveil four new iPhone models.

Amazon.com Inc (NASDAQ:AMZN) shares, which have already surged 86% this year, added 1% as the company

Read More Here...

Bookmark the permalink.

Comments are closed.