A trader works on the floor of the New York Stock Exchange (NYSE) in New York, USA on Monday, August 23, 2021.
Michael Nagel | Bloomberg | Getty Images
Shares rose Tuesday morning after a broad-based rally after it was revealed that U.S. regulators had given Pfizer-BioNTech’s Covid vaccine full approval.
The Dow Jones Industrial Average rose 85 points. The S&P 500 rose 0.2% and the Nasdaq Composite rose 0.3% to hit a record.
The market got off to a good start to the week as stocks sensitive to an economic recovery rose on optimism that vaccine approval would pave the way for additional mandates given the proliferation of the Delta variant.
“With the recent surge in cases and some disappointing economic data, this is another step in the right direction and helps build confidence for those who may still be grappling with the vaccine,” said Ryan Detrick, chief marketing strategist at LPL Financial.
Chinese stocks lead the Nasdaq as investors gain clarity about China’s regulatory outlook and buy stocks from names that have suffered recently. Pinduoduo increased 15%, JD.com 10% and Didi 8.9%.
Best Buy’s shares rose 6% after the electronics retailer beat second-quarter revenue and earnings estimates. Nordstrom is expected to report profits after close of trading.
The vaccine manufacturer’s shares were withdrawn on Tuesday. Pfizer and BioNTech are 2% and 4% lower, respectively. Moderna was down 4%. Trillium Therapeutics, which was up 180% on Monday when it was announced it would be acquired by Pfizer, is also slightly lower, 0.09%.
Still, travel stocks extended their rally from Monday, with airlines and cruise lines up around 2% to 3% on Tuesday. Casino operators Las Vegas Sands and Wynn Resorts are also up 5% and 4% respectively after Macau eased travel restrictions as the Covid-19 outlook improved.
The S&P 500 closed the session 0.8% higher on Monday after hitting a record intraday high. The tech-heavy Nasdaq Composite rose roughly 1.5% to hit a record high. The Dow Jones Industrial Average gained more than 200 points on Monday.
Investors are watching the Jackson Hole Symposium later this week, which is expected to be a market-moving event where central bankers could detail their plans to reduce monetary stimulus. The Federal Reserve has started talks to withdraw its $ 120 billion monthly bond purchase program by the end of this year.
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The summit will take place virtually on Thursday, and Fed Chairman Jerome Powell will give a speech on Friday.
“The Fed could announce a taper in September or November, but it will likely be a slow taper with no commitment to rate hikes.” said Edward Moya, senior market analyst at Oanda.
The second quarter reporting season is drawing to a close as more than 90% of the S&P 500 companies reported results. According to Refinitiv, the S&P 500 will increase its profit by 94.7% year over year.
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