S&P futures pause after strong rally on vaccine cheer

The U.S. flag covers the front facade of the New York Stock Exchange (NYSE) in New York City, New York, U.S., November 9, 2020. REUTERS/Brendan McDermid

(Reuters) – Futures tied to the S&P 500 dipped in choppy trading on Tuesday as worries about the extent of the COVID-19 pandemic’s economic impact resurfaced, a day after Wall Street rallied sharply on successful vaccine data.

The main U.S. indexes clinched new peaks on Monday as the first successful data from a late-stage COVID-19 vaccine trial spurred bets of a swift economic recovery. Democrat Joe Biden’s projected victory in the U.S. presidential election also added to the market cheer.

Biden hailed Pfizer’s PFE.N progress on the vaccine, but urged caution saying it would be “many more months” before widespread vaccination is available. Meanwhile, daily new U.S. cases topped 100,000 for the sixth straight day.

Pfizer’s shares climbed another 4% in early trading on top of their 8% jump in the prior session.

Technology-focused stocks, which benefited from work-from-home policies, lost further ground on Tuesday, pressuring the Nasdaq 100 futures NQcv1 by about 1.6%.

Netflix Inc NFLX.O, Amazon.com Inc AMZN.O, Facebook Inc FB.O, Apple Inc AAPL.O fell between 1.8% and 2.3% as investors rotated into sectors that are expected to benefit from a full reopening of the economy.

Shares of big U.S. banks, which are sensitive to the broader economic outlook, were up about 1% and 2%.

Cruise line operators and carriers battered by travel restrictions including Carnival Corp CCL.N, Royal Caribbean RCL.N, Delta Air Lines DAL.N and United Airlines UAL.O built on Monday’s rally, advancing between 1.5% and 4%.

At 06:38 a.m. EST, Dow E-minis 1YMcv1 were up 0.8% and S&P 500 E-minis EScv1 were down 0.08%.

Source: Read Full Article