69.5 F
Fort Worth
Tuesday, November 24, 2020
Business Rally fades on Wall Street, pulling indexes below records
Business Rally fades on Wall Street, pulling indexes below records

Rally fades on Wall Street, pulling indexes below records

Other News

Stocks fall as virus worries force big rally to take a pause

By STAN CHOE and DAMIAN J. TROISE AP Business Writers NEW YORK (AP) — Worries about the worsening pandemic pushed Wall Street to tap the...

Dow returns to record, S&P 500 goes higher on vaccine hopes

By STAN CHOE and DAMIAN J. TROISE AP Business Writers NEW YORK (AP) — The Dow Jones Industrial Average returned to a record Monday for...

S&P 500 closes at record as possible vaccine lifts markets

By KEN SWEET and DAMIAN TROISE AP Business Writers The S&P 500 closed at a record high on Friday as optimism built among investors that...

Stocks pull further below record highs as infections spread

By STAN CHOE and DAMIAN J. TROISE AP Business Writers NEW YORK (AP) — U.S. stocks pulled back on Thursday, amid increasing worries about worsening...

By STAN CHOE and KEN SWEET AP Business Writers

NEW YORK (AP) — Stocks closed mostly higher on Wednesday, helped by big technology stocks, but news of tighter restrictions in New York State helped dent an earlier rally.

The S&P 500 closed up 27.13 points, or 0.8%, to 3,572.66. The technology-heavy Nasdaq composite, meanwhile, rose by 2%.

The Dow Jones Industrial Average fell 23.29 points, or 0.1%, to 29,397.63. The index was being dragged lower in part by American Express and Walt Disney, two stocks that shot up this week after news of a potentially successful vaccine sent travel, entertainment and tourism companies surging. The Dow declined shortly after news crossed that New York would put restrictions on bars, restaurants and gyms as COVID-19 infections rose in the state.

Enthusiasm about the economy’s possible return to normal has vaulted stocks higher this week following encouraging, but incomplete data on a potential vaccine for COVID-19. That pushed investors to shift dollars out of the old winners of the stay-at-home, virus-wracked economy and into beaten-down stocks that have a brighter future if people feel comfortable again going outside their homes.

Big Tech stocks had borne the brunt of this week’s dramatic reordering, but they clawed back some of those earlier losses. Microsoft rose 2.6%, erasing much of its loss for the week, for example. Amazon gained 3.4% to pare its weekly loss.

Elsewhere in the market, some of the massive rotation that swept through early this week also eased off the accelerator. The S&P 500 was nearly evenly split between stocks rising and falling, while energy and bank stocks gave back a bit of their huge gains from Monday and Tuesday.

Tourism and entertainment stocks fell sharply, following the drops in American Express and Walt Disney. Delta Air Lines fell 5.5% and Wynn Resorts dropped 5.1%.

While several significant risks remain for Wall Street broadly, the optimistic case that investors are embracing is that one or more coronavirus vaccines could help corral the virus by the second half of next year, encouraging people to return to life as it was before the pandemic.

All that economic activity would come on top of the tremendous aid that the Federal Reserve and other central banks around the world are pumping into the economy through very low interest rates and massive purchases of bonds. Hope also remains that the U.S. government may eventually deliver some form of support for the economy, though its total size would likely be smaller than if Democrats had swept this month’s elections.

Strategists along Wall Street are raising their forecasts for stock prices on expectations that political control of Washington will remain split between the parties. Republicans look set to keep the Senate, as long as runoff elections go their way in Georgia in January, while Democrats will hold the House of Representatives.

Democrat Joe Biden has clinched enough electoral votes to win the White House, clearing some of the uncertainty that weighed on the market through the vicious campaign. Even though President Donald Trump has refused to concede, investors are ignoring his complaints so far. They’re instead working on the assumption that a split Washington under Biden could keep tax rates low while offering more steady and predictable policies.

Those expected results helped push strategists at Goldman Sachs to raise their forecast for the S&P 500 at the end of this year to 3,700 from 3,600. That would imply another 4.4% climb from Tuesday’s closing level. They expect it to rally another 16% through 2021. But the biggest driver for that is the hope for a return to normal life, rather than what happens in Washington.

___

AP Business Writers Joe McDonald and Elaine Kurtenbach contributed.

close

Oh hi there 👋
It’s nice to meet you.

Sign up to receive awesome content in your inbox.

We don’t spam! Read our privacy policy for more info.

Latest News

Several local Walmart Supercenters remodeled in time for holidays

Fort Worth and Arlington residents will soon get a first look at the newly remodeled Walmart Supercenters at 9500 Clifford Street, 8401 Anderson St....

Retail trade group sees solid holiday sales despite pandemic

By ANNE D'INNOCENZIO AP Retail Writer NEW YORK (AP) — The National Retail Federation, the nation's largest retail trade group, expects that holiday sales could...

Grapevine company acquires San Antonio family business

Grapevine-based Able Machinery Movers, a heavy machinery-moving and rigging company, announced Nov. 24 the acquisition of Diamond E Rigging, a family-owned rigging and heavy equipment relocation business...

Arlington firm designing new hotel in Las Colinas

Arlington-based Type Six Design & Development has announced the firm has received zoning approval from the City of Irving for a new six-story Hotel...

New ownership at WineHaus

WineHaus Fort Worth announced a change in ownership and updates to the popular wine bar located at 1628 Park Place Ave. New owners Robyn Davis...