US stock futures were unchanged in overnight trading on Tuesday as technology stocks were converted to cyclical names this week.
Dow futures fell 20 points. S&P 500 futures and Nasdaq 100 futures fell 0.1% and 0.1%, respectively.
On Tuesday, the Dow Jones Industrial Average rose 262 points. Hopes of a return to normal economic activity with an effective Covid-19 vaccine are fueled. The small cap Russell 2000 also outperformed, gaining 1.75%.
The S&P 500 fell 0.14%. The tech-heavy Nasdaq Composite lost 1.4%, with Microsoft, Amazon, Facebook and Alphabet all in the red.
Following Pfizer and BioNTech's announcement of their more than 90% effective Covid-19 vaccine, investors switched from tech names and stocks that stay at home to cyclical stocks that depend on a recovering economy.
"The rotation of leadership away from technology and fangs to broader market games like small caps, cyclical sectors and international stocks has intensified for the second year in a row," Jim Paulsen, chief investment strategist at Leuthold Group, told CNBC.
"Since the vaccine was announced ahead of yesterday's opening, investors have sold" stay-at-home "stocks, mostly technology and communications, and bought" economy reopening stocks. "The continuation of that trend today has just convinced more investors that this new trend could continue, ”he added.
Eli Lilly's antibody drug was cleared by the Food and Drug Administration late Monday for emergency use. The agency said the drug could be used to treat mild to moderate cases of Covid-19 in patients older than 12 years.
Both the Dow and S&P 500 hit intraday record highs on Monday, but completed their highs. The Dow is up 4% this week.
The energy sector is up 17% this week as oil prices rise on hopes of improving demand. The financial sector is up 9% since Monday.
The news of vaccines and antibody drugs comes as the US broke its previous record of new Covid infections a day, averaging seven days, and passed the dismal milestone of more than 10 million cases across the country on Monday. The 7-day average of daily new cases on Monday was 108,964, a 37% increase from a week ago. This is based on a CNBC analysis of data from Johns Hopkins University.
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