S&P 500 gained 1.42%. How did Nasdaq and Dow Jones fare?
The S&P 500 and Nasdaq Composite indexes rallied to record highs on Tuesday. Investors are betting that the coronavirus vaccine will be available soon. They seem much more confident about a fast economic recovery after China published upbeat factory data as well.
Traders are closely following updates on a few vaccine candidates, along with the start of global shipments. Drugmakers are submitting paperwork for regulatory approvals.
Moderna Inc has already applied for an emergency approval from the European regulator. However, the stock plummeted down by 9% on Tuesday, lowering from a record high the day before.
Meanwhile, Pfizer Inc. surged forward by approximately 3% after the company and Germany’s BioNTech SE also asked for emergency approval of their vaccine candidate from the European regulator.
Bill Northey, the senior investment director at U.S. Bank Wealth Management in Minneapolis, stated that there is optimism due to news around vaccines emerge.
Earlier on Tuesday, global equities surged forward due to new data that showed China’s factory activity in November soared at its fastest pace in a decade. In addition, several other countries reported sharp increases in factory activity.
The United States wasn’t among those countries, but a slowdown in its manufacturing activity for the month hasn’t discouraged investors. The S&P 500 sector indexes rallied, with communication services soaring by 2.4%.
Federal Reserve Chair Jerome Powell and U.S. Treasury Secretary Steve Mnuchin stated at the Senate Banking Committee, that there is a need for more aid to small businesses, further encouraging investors.
How did the major indexes fare?
The Dow Jones Industrial Average climbed up by 0.92% at 29,910.46 points. The S&P 500 added 1.42% at 3,673.05.
Meanwhile, the Nasdaq Composite rose by 1.55% to 12,387.57 on Tuesday. Overall, all three main stock indexes skyrocketed by more than 10% in November.
On the other hand, Zoom Video Communications Inc plummeted down by 15% after declaring that its gross margins would remain under pressure going into 2021.
