After falling sharply for two days, the tech-heavy Nasdaq was boosted by 'stay-at-home' stocks such as Microsoft and Netflix Inc, which closed up more than 2 per cent and Amazon.com Inc and Apple Inc, which advanced more than 3 per cent. — Reuters pic
Monday’s encouraging late-stage coronavirus vaccine trial data had prompted a two-day rotation away from technology stocks into sectors that outperform coming out of a recession such as industrials, materials and energy. Also, the top US infectious disease specialist urged caution until vaccines are distributed, as California and states across the US Midwest and Northeast tightened restrictions aimed at containing the virus spread.
The technology index, up 2.4 per cent, led gainers among the S&P 500’s 11 major sectors, followed by the consumer discretionary index, which closed up 1.5 per cent, flanked by Amazon.com. The biggest sector decliners were materials, down 1.4 per cent followed by industrials and energy, both finishing down more than 0.8 per cent.
Markets, which also got a boost after Democrat Joe Biden was declared the projected the winner of the US election, have shrugged off legal challenges from President Donald Trump as no evidence of problems with votes has so far been produced. As the Covid restrictions were announced, shares of some retailers and restaurants lost ground. Macy’s fell 4.4 per cent while Darden Restaurants finished down 5.5 per cent. The S&P 600 consumer discretionary index closed above its session low to end the session down 0.1 per cent.