The S&P 500 winning streak of seven days came to a halt as the index edged lower on major tech names plunging. The index closed lower despite flirting with a new all-time high earlier in the day. The index closed at 3,333.69, posting a rare 0.8% loss. Early in the day, it had traded within a half a percent of its all-time highs.
U.S Stock Sell-Off
Tech-laden NASDAQ index sell-off from record highs continued on Tuesday, with the index closing at 10,782.82 down 1.7% for the day. The Dow Jones Industrial Average was also on the receiving end giving back more than 300 points to close 0.4% down at 27,686.
Among the big losers include Facebook Inc. (NASDAQ:FB) and Amazon.com, Inc. (NASDAQ:AMZN), which fell 2% with Microsoft Corporation (NASDAQ:MSFT), Apple Inc. (NASDAQ:AAPL) and Netflix Inc. (NASDAQ:NFLX) sliding 3.4% and 3% respectively. Big winners included Norwegian Cruise Line, which was up 3.4%. Wynn Resorts and Simon Property also advanced higher on optimism of a coronavirus vaccine.
Coronavirus Vaccine Talk
The sell-off in the U.S stock market comes at the backdrop of Russia announcing a first of its kind coronavirus vaccine. The news had initially pushed stocks higher before they tumbled as the session came to a close. The sell-off could as well be attributed to growing concerns over whether Russia has truly developed a safe and effective vaccine.
A coronavirus vaccine is a theme likely to influence investor sentiments going forward. Analysts at Goldman Sachs have already indicated they expect at least one vaccine to get approval before the end of the year, a development likely to boost economic growth outlook.
In contrast, growing concerns over the fate of further coronavirus stimulus to support struggling American households could hurt sentiments going forward. Democrats and Republicans are entangled in a fierce standoff even on President, Donald Trump signing executive orders for a $400 a week employment benefit package.
Escalating U.S China tensions is another tailwind that could fuel risk aversion forcing investors to scamper for safety in safe havens away from risky assets.