Nasdaq jumps as tech stocks back in favor
By Medha Singh and Shivani Kumaresan (Reuters) - Wall Street's main indexes advanced on Wednesday as signs of a working COVID-19 vaccine raised hopes of a faster-than-expected economic rebound, with technology stocks bouncing back from steep losses this week. The tech-skewed Nasdaq advanced 1.3%, while mega-caps Netflix Inc, Amazon.com Inc and Apple Inc, the so-called stay-at-home winners, also gained between 1.7% and 2.5%.
By Medha Singh and Shivani Kumaresan
(Reuters) - Wall Street's main indexes advanced on Wednesday as signs of a working COVID-19 vaccine raised hopes of a faster-than-expected economic rebound, with technology stocks bouncing back from steep losses this week.
The tech-skewed Nasdaq advanced 1.3%, while mega-caps Netflix Inc, Amazon.com Inc and Apple Inc, the so-called stay-at-home winners, also gained between 1.7% and 2.5%.
The tech index climbed 1.8%, the most among major S&P sectors, followed by the consumer discretionary index.
The S&P's growth stock index outperformed the value index, which includes banks and energy stocks, in a reversal of Tuesday's trend.
Encouraging data from a late-stage vaccine earlier this week prompted a rotation away from technology names, and lifted demand for stocks sensitive to economic outlook, as well as value stocks that have lagged broader market.
"With the sell-off over the last couple of days, price became more attractive for growth-oriented investors and also the realization set in that the vaccine isn't going to solve near-term COVID issues here in the U.S.," said Rick Meckler, partner, Cherry Lane Investments, a family investment office in New Vernon, New Jersey.
The top U.S. infectious disease specialist urged caution until a vaccine can be approved and distributed, as California and several states across the U.S. Midwest tightened restrictions.
Markets, which also got a boost after Democrat Joe Biden was projected the winner of the U.S. election, have broadly shrugged off legal challenges from President Donald Trump as they have not produced evidence of problems with votes.
Meanwhile, the Democratic Party retained control of the U.S. House of Representatives with a lower majority, the Associated Press reported, but investors are more focused on Senate races in January that could determine if major Democratic priorities such as a large coronavirus aid bill would be passed.
At 11:07 a.m. ET the Dow Jones Industrial Average rose 32.54 points, or 0.11%, to 29,453.46, the S&P 500 gained 20.02 points, or 0.56%, to 3,565.55 and the Nasdaq Composite gained 149.45 points, or 1.27%, to 11,700.87.
Lyft Inc jumped 5% after the ride-hailing app said it was working on a new service to take a slice of the burgeoning food-delivery market, as it works to make up for a drop in quarterly revenue.
The Philadelphia SE chip index rose about 1.6% after suffering sharp losses a day earlier.
Advancing issues matched decliners on the NYSE and on the Nasdaq.
The S&P 500 posted six new 52-week highs and no new low, while the Nasdaq Composite recorded 68 new highs and five new lows.
(Reporting by Medha Singh in Bengaluru; Editing by Sriraj Kalluvila and Shounak Dasgupta)
This story has not been edited by Firstpost staff and is generated by auto-feed.
By Robin Emmott and John Irish | BRUSSELS/PARIS BRUSSELS/PARIS France and Germany will agree to a U.S. plan for NATO to take a bigger role in the fight against Islamic militants at a meeting with President Donald Trump on Thursday, but insist the move is purely symbolic, four senior European diplomats said.The decision to allow the North Atlantic Treaty Organization to join the coalition against Islamic State in Syria and Iraq follows weeks of pressure on the two allies, who are wary of NATO confronting Russia in Syria and of alienating Arab countries who see NATO as pushing a pro-Western agenda."NATO as an institution will join the coalition," said one senior diplomat involved in the discussions. "The question is whether this just a symbolic gesture to the United States
BEIJING Chinese President Xi Jinping on Wednesday called for greater efforts to make the country's navy a world class one, strong in operations on, below and above the surface, as it steps up its ability to project power far from its shores.China's navy has taken an increasingly prominent role in recent months, with a rising star admiral taking command, its first aircraft carrier sailing around self-ruled Taiwan and a new aircraft carrier launched last month.With President Donald Trump promising a US shipbuilding spree and unnerving Beijing with his unpredictable approach on hot button issues including Taiwan and the South and East China Seas, China is pushing to narrow the gap with the U.S. Navy.Inspecting navy headquarters, Xi said the navy should "aim for the top ranks in the world", the Defence Ministry said in a statement about his visit."Building a strong and modern navy is an important mark of a top ranking global military," the ministry paraphrased Xi as saying.