S&P Drives Toward New Record
August 11,2020 10:38 am EST
The S&P 500 rose on Tuesday, putting it on the cusp of a fresh all-time high amid a rotation out of technology shares and into stocks that would benefit from a reopening of the economy and a vaccine, such as cruise lines and airlines.
The Dow Jones Industrials leaped 294.07 points, or 1.1%, to 28,085.51, soon after Tuesday''s open.
The S&P 500 chugged ahead 8.88 points to 3,369.35, and was within half a percentage point of reaching its Feb. 19 record of 3,393.52
The once high-flying NASDAQ wilted 57.78 points to start the session at 10,910.57
Sentiment was lifted overnight after local news agencies reported Russian President Vladimir Putin claimed the country had given regulatory approval for the world''s first COVID-19 vaccine.
While there was skepticism about whether Russia had developed a safe vaccine so quickly, the news triggered optimism from investors about the race for an inoculation and perhaps that the market isn''t pricing in how quickly a valid one could be ready.
Shares of companies that would benefit most from a vaccine jumped in early trading. American Airlines gained 6.5%. Norwegian Cruise Lines climbed 6.5% as well. Casino shares rose. Mall owner Simon Property Group was higher by 5%. Gap shares climbed by 4.9%.
Major tech shares struggled. Facebook, Amazon, Apple, Netflix and Microsoft were all down at least 1%. Alphabet slid 0.6%.
Prices for the 10-Year Treasury stumbled, raising yields to 0.64% from Monday''s 0.58%. Treasury prices and yields move in opposite directions
Oil prices added 50 cents to $42.44 U.S. a barrel.
Gold prices lost $80.50 to $1,959.20 U.S. an ounce.
Currencies