S&P 500 climbs to record high as vaccine hopes lift economy-linked stocks
Thomson Reuters
- US stocks rose on Tuesday as vaccine progress further boosted equities hit hardest by the pandemic. The S&P 500 rose to a record intraday high.
- Investors cheered Pfizer and BioNTech's application for regulatory approval for their coronavirus vaccine in the European Union. If approved, the shot could be distributed before the new year.
- Federal Reserve Chair Jerome Powell is expected to warn of lingering risks to the US economy during testimony before the Senate banking committee on Tuesday morning.
- Bitcoin fell as much as 6.3%, to $18,157.38 after hitting a record high on Monday.
- West Texas Intermediate crude decreased as much as 1.2%, to $44.81 per barrel.
- Watch major indexes update live here.
US stocks gained on Tuesday, a day after the Dow Jones industrial average completed its best month since 1987.
The S&P 500 opened at a record high as vaccine progress continued to lift stocks battered the most by the coronavirus pandemic. Pfizer and BioNTech applied for regulatory approval for their vaccine in the European Union; if approved, the shot could begin to be distributed before the new year.
Separately, Moderna on Monday applied for emergency use authorization in the US for its vaccine.
Here's where US indexes stood soon after the 9:30 a.m. ET open on Tuesday:
- S&P 500: 3,663.32, up 1.2%
- Dow Jones industrial average: 29,976.62, up 1.1% (338 points)
- Nasdaq composite: 12,308.34, up 0.9%
Cyclical and value stocks outperformed, while moves out of tech bets led the Nasdaq composite to lag behind its peers.
Investors are likely to tune into testimony from Federal Reserve Chair Jerome Powell and Treasury Secretary Steven Mnuchin before the Senate banking committee on Tuesday morning. Powell is set to highlight the economic risks of the coronavirus' resurgence. It's unlikely the chair will hint at Fed actions, though policymakers next meet on December 15 and 16 to discuss the central bank's policy stance.
"The rise in new COVID-19 cases, both here and abroad, is concerning and could prove challenging for the next few months," he said in remarks published ahead of the hearing. "A full economic recovery is unlikely until people are confident that it is safe to reengage in a broad range of activities."
The market's uptick retraced Monday losses and pulled stocks' bullish trend into December. Equities dipped to start the week as investors secured profits. Major indexes still posted historic monthly gains, largely driven by encouraging vaccine news as COVID-19 cases soared.
Tesla gained after S&P Dow Jones Indices said the automaker would be added to the S&P 500 in one step on December 21. A multistage process for including Tesla in the index had been considered.
Zoom Video tumbled after guiding for slower sales growth through the end of the year. Though the company's third-quarter report beat Wall Street estimates, moderating growth led some to question whether the stock's 200% rally from the market's March low was sustainable.
Bitcoin tumbled further from Monday's record high to a 24-hour low of $18,157.38. The cryptocurrency came within $80 of trading above $20,000 on Monday before outsized selling stifled the rally.
Spot gold jumped as much as 2.2%, to $1,815.21 per ounce. The US dollar weakened the majority of Group-of-10 peers, and Treasury yields climbed.
Oil prices dipped as OPEC members deliberated over delaying a production hike scheduled for January. West Texas Intermediate crude fell as much as 1.2%, to $44.81 per barrel. Brent crude, oil's international benchmark, declined 0.4%, to $47.39 per barrel, at intraday lows.
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