“It’s a growth day, flipping back the other way away from value,” said Tim Ghriskey, chief investment strategist at Inverness Counsel in New York. “It’s this ongoing struggle between the virus and the vaccine.”
“There’s a reality setting in that while the vaccine will start being distributed fairly quickly, the virus isn’t going away quickly and therefore the timeline for economic improvement is getting pushed out.”
A wide range of data released in advance of Thursday’s Thanksgiving holiday was dominated by a second consecutive week of unexpected jobless claims increases, suggesting that new restrictions to combat spiking coronavirus cases could hobble the struggling labour market’s recovery.
“The economic data is not good, and we know it won’t be good for some time given this new wave of the virus,” Ghriskey added.
The market appeared to be replaying the previous two weeks, which began with rallies driven by promising vaccine news but pivoted back to stay-at-home plays on near-term pandemic realities and lack of new fiscal stimulus.
Still, the vaccine developments and removal of uncertainties surrounding the US presidential election have driven Wall Street indexes to record closing highs, and put the S&P 500 on course for its best November ever.
The Dow Jones Industrial Average fell 173.77 points, or 0.58 per cent, to 29,872.47; the S&P 500 lost 5.76 points, or 0.16 per cent, to 3,629.65; and the Nasdaq Composite added 57.08 points, or 0.47 per cent, to 12,094.40.