The composite indexes of S&P 500 and NASDAQ on Tuesday close at record highs. The investors were betting on the COVD -19 vaccine’s availability in the near future, and were also hopeful of a fast economic recovery.
As the paperwork by drugmakers is submitted for regulatory approvals, investors stay focused and hopeful for the start of global shipments.
After Pfizer Inc and Germany’s BioNTech SE sought an emergency approval of their vaccine from the European Regulator, Pfizer Inc recorded a 3% jump.
The stock of Moderna Inc. which is a rival of the above mentioned partners fell by nearly 8% from its record high the day before. Moderna Inc. has also applied of emergency approval from the European regulator.
Bill Northey, senior investment director at US Bank Management in Minneapolis had said that looking towards a health solution could be like sitting on a coiled spring of economic activity which could take a long time to uncoil.
There was a boost in global activities earlier in the day, when data showed that the factory activities in China in the month of November has increased and showed the fastest rate recorded in 10 years. The sector indexes of all 11 S &P 500 rose and communication services were up by 2% and the leading gains. Slack Technologies plunged by 1% in extended trade. This was a result of Salesforce.com agreeing to buy the messaging app company in a deal that was worth $28 billion.
The Industrial average of Dow Jones rose 0.63% and ended at 29,823.92 points. The S&P recorded a 1.13% to 3,662.44 gain.
Zoom Video Communications Inc fell 15%, Tesla Inc went up 3% and Micron Technology Inc. climbed 4.7%
There were 48 new 52 week highs posted by the S&P500 and there were no new lows. There were 185 new highs recorded by the NASDAQ composite.