Significant Fall in Tech Stocks on Wall Street – E24

The leading indices on Wall Street took different directions on Tuesday.

• Dow Jones rises 0.9 percent
• S&P 500 down 0.15 percent
• Nasdaq Comp down 1.4 percent

This comes the day after the companies Pfizer and Biontech announced a breakthrough in the vaccine, with a 90 percent effective candidate.

Investors around the world have generally reacted positively to the news and sent major exchanges higher in hopes that they will now see the light at the end of the pandemic tunnel.

Good morning to Boeing

On Monday, the Dow Jones rose above two percent and oil prices rose above $ 43 a barrel.

However, not all shares are loaded. Rather, it appears that tech stocks are now being traded. Amazon (-3 percent) and Spotify (-9 percent) were among the tech giants that fell on Tuesday.

Things were better with aviation giant Boeing, which was up 4.6 percent.

Real optimism

DNB Markets analyst Ingvild Borgen Gjerde noted in a report Tuesday that yesterday’s news is something that actually gives optimism about the growth prospects to come, in contrast to what has largely boosted the markets. securities earlier this year, namely the extremely favorable policy of the central bank.

– The latter has primarily benefited large technology companies, he writes.

There are two reasons for this, according to the analyst. So much so because these are companies that are expected to generate earnings growth for a long time, so low interest rates mean that the present value of their earnings in the future will be very high.

– And because many of these companies have benefited from the crisis of the crown and, in fact, have increased their profits despite the sharp decline in economic activity in general, writes Borgen Gjerde.