Dow climbs on renewed stimulus hopes, vaccine information from Investing.com
By Yasin Ebrahim
Investing.com – The Dow rebounded on Tuesday after a gentle start to the week as renewed hopes of fiscal stimulus and positive vaccine news lifted investor sentiment and eased concerns over Covid-19 infections in the US
That rose by 0.91% or 268 points. That was 1.34% while that was up 1.39%.
Pharmaceutical giants Pfizer and Modern (NASDAQ 🙂 moved closer to EU approval for their respective Covid-19 vaccines after the European Medicines Agency announced it would complete evaluations of both companies’ vaccines by December 29 and January 12, respectively.
Pfizer (NYSE 🙂 rose 3% and its development partner BioNTech (NASDAQ 🙂 fell 10% while Moderna fell 12%.
The backdrop of advances in vaccines has helped allay some investors’ fears that infections could continue to rise in the coming weeks as more people gather over the holidays.
U.S. coronavirus cases in America have doubled to a record four million in one month.
The impact of the rising Covid-19 cases appears to have created a sense of urgency among lawmakers to step up efforts on a stimulus package that many claim will take to support the economy until widespread adoption of vaccines .
House Speaker Nancy Pelosi and US Treasury Secretary Steven Mnuchin will restart talks on a new economic deal as lawmakers on Capitol Hill reportedly pass a US $ 908 billion coronavirus relief bill Dollar that includes aid to various parts of the economy including small businesses and unemployed Americans.
The positive news about vaccines sparked optimism from Federal Reserve Chairman Jerome Powell, who announced upside risks to the economy over the medium term but continued to reiterate a long road to recovery.
The risk is upside over the medium term, although in the near future many small businesses are at risk of going out of business this winter, “Powell said.” We still have a long way to go to recover. “”
Value stocks – those linked to economic performance reclaimed some of their losses from the previous day, with financials among the biggest winners, up nearly 2%.
However, energy lagged behind the surge in inventories after major producers postponed the decision to cut output from January through the end of this week.
In technology, Zoom video communication (NASDAQ 🙂 was among the session’s biggest declines, down 15% after the video conferencing software maker reported better-than-expected results and forecasts, but warned of increased churn in the final quarter of the year that will slow revenue growth.
“Given heightened expectations of the print and concerns about post-COVID growth rates for the company, we would expect the near-term stock weakness to persist,” RBC said after the price target for Zoom was lowered to $ 550 from $ 600.
Among Fab 5 stocks, Facebook (NASDAQ 🙂 rose nearly 4%, while Amazon.com (NASDAQ :), Alphabet (NASDAQ :), and Microsoft (NASDAQ 🙂 traded higher.
In other news, Kohl’s (NYSE 🙂 rose 14% after detailed planning to partner with Sephora to open more than 800 mini-stores in its stores by 2023.
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