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The Wall Street rally seems to have come to its end as most defining stocks closed lower amidst increasing COVID-19 cases.
The new confirmed cases of COVID-19 surging all over the United States seems to be causing untold reactions in the stock market. Florida stood out over the weekend recording about 15,000 confirmed cases, a new all-time coronavirus high for any state since the first case of COVID-19 was discovered in the United States. As a result, Wall Street reversed its positive trend on Monday as key tech stocks sustaining the S&P 500 (INDEXSP: .INX) sent off a weakening run. The S&P 500 had on Monday experienced its positive year to date gain with about 0.1% gain but this rally was short-lived as the index stock closed 0.9% lower at 3,155.22. Earlier in the day, the broader market index rallied more than 1%.
After rallying as much as 563.79 points, or 2.2%, the Dow Jones Industrial Average (INDEXDJX: .DJI) sustained its 10.50 points gain, or less than 0.1%, to close at 26,085.80. For Nasdaq Composite (INDEXNASDAQ: .IXIC), the Nasdaq-100 broke above 11,000 but later plunged by 2.2% resulting in the 2.1% drop of the Nasdaq Composite to close at 10,390.84 after being up as much as 1.95%
Companies Performance that Defines Wall Street Trend Changes
Some of the key company stocks also had a brief rally period and ended up closing low just like the Wall Street indices. Tesla Inc (NASDAQ: TSLA) rallied by 16.2% and later closed 3.1% lower. Peter Boockvar, chief investment officer at Bleakley Advisory Group commented on Tesla (TSLA) stock. He said:
“Tesla is the poster boy of a parabolic move here. Tesla started to roll over at 11:40 a.m.That accelerated and at about 2 p.m. The California headlines just exaggerated the move … we know it’s a one-way street. It got really just stretched and overbought and over-crazed in these tech stocks.”
Microsoft Corporation (NASDAQ: MSFT) dropped by 3.1% while Apple Inc (NASDAQ: AAPL) ended the day trading 0.5% lower. Facebook Inc (NASDAQ: FB), Amazon.com Inc (NASDAQ: AMZN), Netflix Inc (NASDAQ: NFLX), and Alphabet Inc (NASDAQ: GOOGL) (NASDAQ: GOOG) all closed at least 1.7% lower.
In the wake of new coronavirus cases, the hope placed on pharmaceutical companies working to discover the COVID-19 vaccine has sent some of these pharmaceutical companies’ stocks higher. While BioNTech SE (NASDAQ: BNTX) jumped 11%, Pfizer Inc (NYSE: PFE) gained 4.1% as both companies got a fast track designation by the FDA on Monday.
The key stocks as highlighted have a rough start to the trading week but as Wall Street is known to be particularly dynamic, the stocks can leverage the reopened economy and growing demands to turn the tables around. In all, the resilience of Wall Street will consolidate any downtrend these companies are experiencing at the moment.