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November 11, 2020 @ 10:18 +03:00
U.S. equity futures were higher in overnight trading on Tuesday, amid this week’s rotation out of technology stocks into cyclical names. Dow futures added 92 points. S&P 500 futures and Nasdaq 100 futures both traded in mildly positive territory.
On Tuesday, the Dow Jones Industrial Average climbed 262 points. Fueling the rally is the hopes of a return to normal economic activity with an effective Covid-19 vaccine. The small cap Russell 2000 also outperformed, gaining 1.75%. The S&P 500 fell 0.14%. The technology-heavy Nasdaq Composite lost 1.4%, with Microsoft, Amazon, Facebook and Alphabet all closing in the red.
Following Pfizer and BioNTech’s announcement about their more than 90% effective Covid-19 vaccine, investors moved out of technology names and stay-at-home stocks and into cyclical stocks that hinge upon a recovering economy.
Both the Dow and S&P 500 hit intraday record highs on Monday, but closed off their highs. The Dow is up about 4% this week. The energy sector is up 17% this week, as oil prices gain on hopes of improving demand. The financial sector has risen about 9% since Monday.
The vaccine and antibody drug news comes as the United States once again topped its prior day record of daily new Covid infections, on a seven-day average, while also crossing the bleak milestone of more than 10 million cases nationwide on Monday. The seven-day average of daily new cases Monday was 108,964, a 37% increase from a week ago, according to a CNBC analysis of data from Johns Hopkins University.
Stock futures edge higher amid market rotation out of growth, CNBC, Nov 11