Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Settings
Settings
Dynamic quotes 
OFFON

MarketScreener Homepage  >  Indexes  >  USA  >  S&P 500    SP500

S&P 500

(SP500)
SummaryQuotesChartsNewsHeatmapComponents 
SummaryMost relevantAll NewsOther languagesNews of the index componentsMarketScreener Strategies

Stocks Pull Back After S&P 500's Tuesday Record

12/02/2020 | 09:47am EST

By Will Horner

U.S. share benchmarks edged lower Wednesday, suggesting that major indexes will take a breather after climbing to record highs.

The S&P 500 ticked down 0.3%, a day after the benchmark set its 27th closing record of the year. The technology-heavy Nasdaq Composite Index slid 0.6%, while the Dow Jones Industrial Average also retreated 177 points, or 0.6%, to 29646.

The market has been propelled higher in recent weeks by optimism that Covid-19 vaccines will help accelerate the economic rebound. That has led to a jump in stocks that are sensitive to economic growth, including energy and banks.

"We've obviously had a great run up since just before the election results and yesterday we saw that record high, so that is as much a reason as any for some consolidation," said Derek Halpenny, head of research for global markets in the European region at MUFG Bank.

Stocks are likely to continue rallying in coming weeks, despite valuations that appear to be stretched, he added. "Why would you be a seller of stocks when you know that policy support, both fiscal and monetary, is there and probably will be there going forward?"

Ahead of the opening bell in New York, Pfizer rose 3% after the U.K. government approved its Covid-19 vaccine for use, paving the way for the shot to be distributed within days. Shares in Pfizer's partner, BioNTech, rose over 4% in Germany.

Salesforce.com fell more than 6% in premarket trading. The cloud-computing company on Tuesday confirmed that it had agreed to buy Slack Technologies for $27.7 billion.

U.S. lawmakers this week reignited talks for coronavirus relief packages, with House Speaker Nancy Pelosi and Treasury Secretary Steven Mnuchin discussing measures by phone for the first time since the election. But investors remain skeptical about the prospects for fresh stimulus spending in the weeks before President-elect Joe Biden is sworn in.

"Both sides would like to be seen to be doing something with an eye on the run off in Georgia on the fifth of January," Mr. Halpenny said. But Republicans are unlikely to support a large spending package, he added. "I can't see anything happening really until Biden enters the White House."

The Federal Reserve's beige book report, due at 2 p.m. ET, will offer the latest collection of business anecdotes across Fed districts, offering insights into how companies view the economy's prospects.

The ADP National Employment Report on Wednesday showed that job creation in the private sector slowed last month. About 307,000 new nonfarm jobs were created, marking a drop from October and less than economists had been forecasting.

Federal Reserve Chairman Jerome Powell and Mr. Mnuchin are set to testify before a house committee. Lawmakers on Tuesday pressed Mr. Mnuchin over his decision not to renew a suite of emergency Federal Reserve lending programs. The Fed has said it would prefer the lending programs remain in place until the risks posed to the economy by the pandemic has subsided.

In bond markets, the yield on the 10-year Treasurys ticked up to 0.938%, from 0.933% on Tuesday.

Overseas, the Stoxx Europe 600 edged down 0.5%. Conflicting reports about the status of the talks between the European Union and the U.K. on a post-Brexit trade deal led to choppy trading in the region.

The British pound dropped 1% against the dollar. A media report that a senior EU diplomat is cautioning both sides run the risk of a no-deal Brexit weighed on sentiment early Tuesday, according to James McCormick, global head of desk strategy at Natwest Markets.

"We are in this moment where negotiations have gone into the tunnel," Mr. McCormick said. "While it is hard to judge where talks are, the early indications are that a no-deal is still a non-negligible risk," he said.

In Asia, the major stock indexes ended trading on a muted note. Japan's Nikkei 225 closed almost flat, while the Shanghai Composite Index and Hong Kong's Hang Seng Index slid roughly 0.1%.

Write to Will Horner at William.Horner@wsj.com

(END) Dow Jones Newswires

12-02-20 0946ET

Stocks mentioned in the article
ChangeLast1st jan.
DJ INDUSTRIAL -0.57% 30996.98 Delayed Quote.1.86%
HANG SENG -1.66% 29441.63 Real-time Quote.8.12%
NASDAQ 100 -0.29% 13366.396971 Delayed Quote.3.71%
NASDAQ COMP. 0.09% 13543.061633 Delayed Quote.4.99%
NIKKEI 225 -0.44% 28631.45 Real-time Quote.4.33%
S&P 500 -0.30% 3841.47 Delayed Quote.2.27%
All news about S&P 500
01/22WALL STREET STOCK EXCHANGE : Dow, S&P 500 dragged lower by Intel, IBM
RE
01/22Tech shares could retake market reins as earnings heat up
RE
01/22Weak data, earnings drag stocks lower; oil falls
RE
01/22Morgan Stanley CEO James Gorman Got a Big Raise for 2020
DJ
01/22Dow, S&P 500 Decline But Post Gains for the Week
DJ
01/22Dow, S&P close lower as IBM, Intel weigh, coronavirus concerns rise
RE
01/22Equities End Mixed on Concerns of Rising COVID-19 Cases, Reports of Deadlier ..
MT
01/22CLOSE UPDATE : Nasdaq Leads Indexes Higher for Week as Stocks End Friday Mixed
MT
01/22Dow Drops But Notches Weekly Gain
DJ
01/22US Oil Rig Count Rises by Two, Marking Seventh Straight Weekly Gain
MT
More news
Chart S&P 500
Duration : Period :
S&P 500 Technical Analysis Chart | MarketScreener
Full-screen chart
Technical analysis trends S&P 500
Short TermMid-TermLong Term
TrendsBullishBullishBullish
Heatmap :