The Dow dipped today after surging more than 600 points on Monday. Yesterday marked the best day for the S&P 500 since June as jitters over the bond market calmed and investors grew increasingly optimistic about fiscal stimulus and coronavirus vaccinations.
The Dow Jones Industrial Average traded 0.4% lower. The S&P 500 slid 0.6% and the tech-heavy Nasdaq Composite dipped 1%. The S&P 500 rallied more than 2% Monday for its best day since June.
“The sentiment is the risk on with more investors showing interest towards cyclical stocks while a positive vaccination drive and better macro numbers are hinting towards a better growth environment,” said Keith Buchanan, portfolio manager at GLOBALT in Atlanta.
US government officials now say that 15 percent of the population has received at least one shot of a COVID vaccine, a big jump in only a matter of weeks.
The 10-year Treasury yield, a point of focus lately for equity investors, dipped to 1.43%. The benchmark rate started stabilizing this week after surging to its high of 1.6% last week, which eased investor fears about higher borrowing costs and inflation.
Shares of Johnson & Johnson jumped almost 2 percent in early trading after the company received approval for emergency use of its one-shot COVID vaccine over the weekend.
One asset that is holding onto a big day is Bitcoin.
After leaping more than 9 percent Monday morning and getting back to a price of $49,410, the king of crypto is holding onto most of its gains, recently up 6.3 percent at $48,149 after a Citi research report found that Bitcoin is at a “tipping point” to reach mainstream acceptance and could “become the currency of choice for international trade.”
Bitcoin likewise got a boost on reports that Goldman Sachs has reopened its crypto desk after shuttering it in 2018 after an earlier crypto bubble burst.