American stocks tumbled on Wednesday, pulling back from Tuesday’s record highs, rising cases of coronavirus and a slowdown in private sector job creation weighed on investor sentiment.
The S&P 500 fell 0.3% a day after the benchmark hit its 27th closing record of the year. The Nasdaq Composite also fell 0.8% after hitting a record high. And the Dow Jones Industrial Average retreated about 125 points, or 0.4%.
The market has been pushed further in recent weeks by optimism to accelerate the Covid-19 vaccine economic recovery. This has led to a rise in stocks that are sensitive to economic growth, including energy and banks.
“We’re clearly moving ahead of the election results and we saw that record high yesterday, so that’s the reason for some consolidation,” said Derek Helppeny, head of global markets research. Region.
He added that despite valuations being raised, stocks will continue to rise in the coming weeks. “Why would you be a stock seller when you know that both financial and monetary policy is supportive and will probably go there?”
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