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* Market cools off after huge Monday rally
* Pandemic Technology Winners Retreat
* Investors move away from growth stocks in favor of value
* Dow up 0.6%, S&P down 0.2%, Nasdaq down 1% (early afternoon updates)
Nov. 10 (Reuters) – The S&P 500 and the Nasdaq fell on Tuesday as excitement over signs of a successful early late-stage COVID-19 vaccine trial faded, as investors continued to withdraw money from some of the big tech companies that have benefited the most. the pandemic.
Amazon.com Inc, Facebook Inc and Microsoft Corp, which exploded during this year’s work-from-home period and propelled Wall Street to new heights, extended Monday’s losses and pushed back the high-tech Nasdaq, about 1.3%.
The tech, communications services and consumer discretionary indices fell sharply as investors turned to sectors that stand to benefit from a full reopening of the economy, such as energy, industrials and materials.
“We are seeing a rotation away from growth areas, particularly technology and communications services, mainly because investors want to look more to groups that have been underperforming so far,” said Sam Stovall , Chief Investment Strategist at CFRA Research.
Value stocks, which tend to outperform emerging from a recession, added 1%, while growth stocks fell 0.8%.
Major U.S. indices hit new highs on Monday as encouraging data from an advanced COVID-19 vaccine trial prompted bets on a rapid economic recovery next year. Democrat Joe Biden’s projected victory in the US presidential election also added to the market glee.
“While this is great news, it’s just a plan and we need to see some practical things around it, like how (the vaccine) is going to be rolled out, who is going to get it,” JJ Kinahan said, Chief Market Strategist, TD Ameritrade in Chicago. .
Biden praised the progress made on the vaccine, but urged caution, saying it would take “several more months” before the widespread vaccination was available. Meanwhile, daily new cases in the United States surpassed 100,000 for the sixth day in a row.
The apparent breakthrough in a coronavirus vaccine weakens the case for another big U.S. fiscal stimulus bill, but relief is still needed for struggling businesses, investors have said.
Senate Majority Leader Mitch McConnell argued last week for a smaller stimulus package for coronaviruses after data indicated a drop in the unemployment rate in the United States in October.
At 12:40 p.m. ET, the S&P 500 lost 6.89 points or 0.19% to 3543.61 and the Nasdaq Composite lost 121.85 points or 1.04% to 11,591.93. The Dow Jones Industrial Average rose 158.46 points or 0.55% to 29,316.43.
Amgen Inc gained 3.6% after its asthma drug, developed in collaboration with AstraZeneca, achieved primary goal of late stage study.
Ulta Beauty Inc topped the S&P 500 winners, soaring 7.7% after the cosmetics store chain signed a long-term deal with Target Corp to open its own stores in big box stores. The target gained about 2%.
Apple Inc made slight progress ahead of an event where it is expected to unveil new Mac computers using its own internal processor chips.
Rising issues outnumbered decreasing numbers for a 1.8 to 1 ratio on the NYSE and a 1.5 to 1 ratio on the Nasdaq.
The S&P Index recorded 10 new 52-week highs and no new lows, while the Nasdaq recorded 65 new highs and 20 new lows.
Report by Medha Singh in Bengaluru; Editing by Shounak Dasgupta and Sriraj Kalluvila