Stocks rose on Wednesday as traders added exposure to tech names that were hard hit earlier in the week.
The Dow Jones Industrial Average gained 89 points, or 0.3%. The S&P 500 climbed 0.9% while the tech-heavy Nasdaq advanced 1.8%.
Apple gained 2.7%. Netflix climbed 0.9%. Facebook and Amazon rose 1.1% and 2.8%, respectively. Alphabet traded 0.6% higher and Microsoft was up by 2.8%.
Wednesday’s moves came after strong back-to-back strong sessions for the Dow that were sparked by Pfizer and BioNTech’s announcement about their more than 90% effective Covid-19 vaccine.
The news caused investors to move out of technology names and stay-at-home stocks and into cyclical stocks that hinge on a recovering economy.
“An abrupt macro positive shock such as we saw this week can lift all value stocks for a time,” Inigo Fraser-Jenkins, co-head of the portfolio strategy team at Bernstein, wrote in a note. “However, we think that the outlook for the next year has to be more nuanced.”
“Real yields are likely to be held low and there is still a greater longevity of growth for high Growth companies, thus we think it is right to remain overweight Growth companies where [it is reasonable] to believe their growth can be sustained,” Fraser-Jenkins said.
The energy sector is up 17% this week, as oil prices gain on hopes of improving demand. The financial sector has risen about 8% since Monday.
Both sectors were under pressure on Wednesday, however. Energy dipped 0.1% and financials slid about 1%.
Eli Lilly’s antibody drug was cleared by the Food and Drug Administration for emergency use late Monday. The agency said the drug could be used to treat mild-to-moderate cases of Covid-19 in patients who are older than 12 years old.
The vaccine and antibody drug news comes as the United States once again topped its prior day record of daily new Covid-19 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.
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