People walk past the New York Stock Exchange.
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Stock futures fell in night trading Monday after a record rally sparked by promising news about a coronavirus vaccine.
The futures on the Dow Jones Industrial Average fell 243 points. S&P 500 futures and Nasdaq 100 futures also traded in negative territory.
The night action came after a strong rally on Wall Street that saw the Dow and S&P 500 hit new intraday record highs. The 30-share average rose more than 800 points, posting its largest one-day gain since June 5th. It rose more than 1,600 points at one point before weakness in the tech sector put pressure on the broader market. The S&P 500 gained 1.2%.
The US pharmaceutical company Pfizer and the German biotech company BioNTech announced on Monday that their coronavirus vaccine was more than 90% effective in preventing Covid-19. The news shot up travel stocks as these companies' recovery depends on a successful economic reopening. American Airlines, Delta and United all rose more than 15%, while Carnival, Norwegian and Royal Caribbean all gained more than 25%.
"The strong results from the Pfizer vaccine have been better than expected and mean we could open up sooner than expected," said Ryan Detrick, chief marketing strategist at LPL Financial. "In connection with an economy that continues to surprise positively, the stock market is now calculating the prospect of a much better economy in year 21."
While cyclical stocks led market progress on Monday, the tech-heavy Nasdaq Composite fell 1.5% as investors ditched some of the popular stay-at-home games like Zoom Video and Netflix. The Nasdaq ended the session near its session lows on Monday.
"The 'stay at home' trade, which has been driving the market for much of this year, may fall out of favor," said Lindsey Bell, chief investment strategist at Ally Invest. "There's still a good long-term argument in favor of technology, but it may not outperform the rest of the market as it has since March."
Pfizer's big vaccine news came as the U.S. topped 10 million cases of Covid-19, a dismal milestone just 10 days after hitting the 9 million mark amid a record spike in daily infections. Many on Wall Street believe that having a viable vaccine is critical to the economy as it moves to a full recovery.
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