Friday September 17th, 2021 5:43PM

U.S. stocks end mostly lower after an early rally evaporates

By The Associated Press
Related Articles
  Contact Editor

Stocks closed mostly lower on Wall Street Monday after an early rally faded, extending the market's recent pullback from record highs.

The S&P 500 fell 0.4% after having been up 0.9% in the early going. The reversal handed the benchmark index its fourth straight decline, something that hasn't happened since September. Losses in the financial, industrial and health care sectors accounted for much of the decline, outweighing gains by technology stocks and companies that rely on consumer spending. Treasury yields were mostly higher, a sign of optimism in the economy.

Stocks initially headed higher as Americans began receiving the country’s first vaccinations against COVID-19, a process that's expected to take months. Meanwhile, investors are still waiting to see whether Congress can break a logjam on delivering more aid to people, businesses and local governments affected by the coronavirus pandemic. They're also monitoring talks on reaching a trade deal between Britain and the European Union.

“To a large degree, we’re in a wait-and-see mode,” said Terry Sandven, chief equity strategist at U.S. Bank Wealth Management. “The good news is the vaccine is being distributed, which suggests we’re on the road to recovery.”

The S&P 500 fell 15.97 points to 3,647.49. The index declined 1% last week, its worst weekly performance since Halloween.

The Dow Jones Industrial Average dropped 184.82 points, or 0.6%, to 29,861.55. The Nasdaq rose 62.17 points, or 0.5%, to 12,440.04. Smaller companies held up better than their larger rivals, an indication that investors are feeling more confident about the economy’s prospects. The Russell 2000 index gained 2.16 points, or 0.1%, to 1,913.86.

Hospital workers are unloading the first batches of a coronavirus vaccine developed by Pfizer and its German partner, BioNTech, following its approval for emergency use by U.S. regulators. Health care workers and nursing home residents will be first in line for vaccinations, and the hope in markets is that a wider rollout next year will help pull the economy back toward normal following its devastation this year.

Such optimism has helped Wall Street's rally broaden out beyond Big Tech stocks, which were pulling the market higher almost singlehandedly earlier in the pandemic, though Monday's pullback dragged down many of the companies that desperately need the economy to get healthier and reopen. American Airlines dropped 2.1%, while Carnival slid 1.8%. Marriott International gave up 1.5%.

Alexion Pharmaceuticals soared 29.2% for the biggest gain in the S&P 500. It’s the first trading day for the stock since AstraZeneca said on Saturday that it would buy the company for $39 billion in cash and stock.

Of course, the hopes for the economy in the future are tempered by the worsening pandemic in the present. Surging coronavirus counts have forced a downshift to the economy’s momentum, including last week’s worse-than-expected report on joblessness. The increasing death toll is pushing governments around the world to bring back varying degrees of restrictions on companies, and it’s also scaring potential customers away from businesses on its own.

To help in the interim, economists and investors have been asking Congress to deliver another round of financial support for the economy. Democratic and Republican legislators have been discussing a bipartisan possibility, which has raised hopes on Wall Street recently. But bitter partisanship has prevented a deal for months, and a deep divide still dominates on Capitol Hill.

Even without another round of stimulus, investors are facing a robust environment heading into next year that includes low inflation and an accommodative Federal Reserve.

“The market is prepping itself for a really good year in 2021 with earnings starting to kick in during the second and third quarter,” said Marc Chaikin, founder of Chaikin Analytics.

Across the Atlantic, hope was rising that talks are making progress in what has been just as frustrating as the stalemate in Washington, a potential deal on the terms of the United Kingdom’s exit from the European Union.

The EU’s chief negotiator Michel Barnier said Monday he believes a trade agreement is possible following nine months of negotiations, now that remaining disputes have been whittled down to just two. Both sides are still teetering on the brink of a no-deal departure, though. They have committed to a final push ahead of Jan. 1, when a transitional period following Britain’s Jan. 31 departure from the bloc is to end.

Hope for a deal helped the value of the British pound rise against other currencies. European stock markets closed mostly higher, and Asian markets ended mostly lower.

The yield on the 10-year Treasury rose to 0.90% from 0.87% late Friday.


Associated Press Business Writer Elaine Kurtenbach and writer Raf Casert contributed.

  • Associated Categories: Associated Press (AP), AP National News, AP Online National News, Top General short headlines, AP Online Headlines - Washington, AP Online Congress News, AP Business, AP Business - Economy, AP Business - Financial Markets, AP Business - Industries, AP Business - Health Care
© Copyright 2021
All rights reserved. This material may not be published, broadcast, rewritten, or redistributed without permission.
The Latest: 6 positive virus cases in latest EPL tests
The latest English Premier League tests have revealed six new positive tests for COVID-19
4:21PM ( 9 minutes ago )
Supreme Court won't revive Kansas voter registration ID law
The Supreme Court has rejected an appeal from Kansas that sought to revive a law requiring proof of citizenship to register to vote
4:18PM ( 12 minutes ago )
U.S. stocks end mostly lower after an early rally evaporates
Stocks ended mostly lower on Wall Street Monday after an early rally evaporated
4:14PM ( 16 minutes ago )
Associated Press (AP)
US sanctions NATO ally Turkey over Russian missile defense
The Trump administration is imposing sanctions on its NATO ally Turkey over its purchase of a Russian air defense system
3:59PM ( 31 minutes ago )
Early in-person voting begins in Georgia Senate runoffs
Early in-person voting has begun in the Jan. 5 runoff elections for Georgia for two U.S. Senate seats
3:58PM ( 32 minutes ago )
US blames Iran in abduction, death of ex-FBI agent Levinson
The U.S. government is for the first time formally blaming Iran for the presumed death of retired FBI agent Robert Levinson
3:39PM ( 51 minutes ago )
AP National News
'Relieved': US health workers start getting COVID-19 vaccine
The largest vaccination campaign in U.S. history is underway with health workers getting the first shots
2:08PM ( 2 hours ago )
London faces tightest restrictions; sees new virus variant
Britain's health secretary says London and it surrounding areas will be placed under the highest level of coronavirus restrictions beginning Wednesday as infections rise rapidly in the capital
1:52PM ( 2 hours ago )
EXPLAINER: Allergic reactions to vaccines rare, short-lived
Vaccines can sometimes cause allergic reactions, but they are usually rare and short-lived
1:12PM ( 3 hours ago )
Top General short headlines
The Latest: Wisconsin casts its 10 electoral votes for Biden
Wisconsin has cast its 10 Electoral College votes for Democrat Joe Biden
2:25PM ( 2 hours ago )
Top US officials expected to get COVID-19 vaccine this week
Senior U.S. officials will begin receiving coronavirus vaccines this week as part of updated federal continuity of government plans that now include terrorism and pandemics as threats to the nation and its leaders
2:12PM ( 2 hours ago )
The Latest: Republicans mad about Biden's win hold side vote
Some Republicans who refuse to acknowledge the reality of President-elect Joe Biden’s win are meeting to cast ceremonial votes for President Donald Trump
1:22PM ( 3 hours ago )
AP Online Headlines - Washington
The Latest: Electors begin casting their votes for president
Electors from the first states have cast their votes
11:37AM ( 4 hours ago )
S. Korea bans flying of leaflets toward N. Korea by balloon
South Korea’s parliament has approved contentious legislation criminalizing the flying of propaganda leaflets by balloon toward North Korea, despite fierce criticism that the country is sacrificing freedom of expression to improve ties with the rival North
10:04AM ( 6 hours ago )
The Latest: Michigan legislative offices closed over threats
Michigan legislative offices are closed because of threats of violence as presidential electors prepare to gather in the state Capitol to cast their votes for Democrat Joe Biden
9:44AM ( 6 hours ago )
AP Online Congress News
The Latest: US health officials vouch for vaccine's safety
Health and Human Services Secretary Alex Azar and Surgeon General Jerome Adams stressed the vaccine’s safety and effectiveness, while raising issues of social equity
3:53PM ( 38 minutes ago )
Polish leader hails summit deal on use of EU sanctions
Poland’s conservative ruling party leader says the compromise struck at last week’s European Union summit that limits the use of financial sanctions will protect the country from an EU “attack.”
3:46PM ( 45 minutes ago )
France's Macron wants to add climate goals in constitution
French President Emmanuel Macron has announced a referendum to add the fight against climate change and the need to preserve the environment into the French Constitution
3:37PM ( 54 minutes ago )
AP Business
Wall Street rallies following worst week since Halloween
Stocks are rising on Wall Street Monday as the country’s first vaccinations against COVID-19 have the end of the pandemic slowly materializing into hazy sight
12:05PM ( 4 hours ago )
Stocks open higher on Wall Street as vaccine rolls out in US
Stocks are opening broadly higher Monday as the weekend rollout of the first batches of COVID-19 vaccine to be approved by U.S. regulators helped brighten the outlook for fighting the pandemic
9:46AM ( 6 hours ago )
EU's chief negotiator still hopes to clinch EU-UK trade deal
European Union chief negotiator Michel Barnier said Monday he still firmly believes that a post-Brexit trade agreement is possible, and whittled down the major outstanding disputes to be settled ahead of the New Year to just two
7:42AM ( 8 hours ago )
AP Business - Economy
Tom Vilsack faces new challenges as he returns to old job
President-elect Joe Biden has nominated Tom Vilsack to take back his old job at the Agriculture Department, saying his eight years of experience at the department under former President Barack Obama would ensure quicker help to rural and poor areas that are “reeling” from the pandemic and economic downturn
12:10AM ( 2 days ago )
Stocks extend losses as virus aid languishes in Congress
Stocks ended lower on Wall Street as prospects for another aid package from Washington faded even as a surge in virus cases threatens to inflict more damage on an already battered economy
10:19PM ( 2 days ago )
Global stocks lower after Wall St falls on virus pressure
Global stock markets are mostly lower after U.S. unemployment claims rose in a sign the coronavirus pandemic's economic damage is worsening
4:00AM ( 3 days ago )
AP Business - Financial Markets
The Latest: Canada gives first doses COVID-19 vaccine
Canada has administered its first doses of COVID-19 vaccine
12:49PM ( 3 hours ago )
The Latest: London faces highest-level COVID-19 restrictions
Britain’s health secretary says London and surrounding areas will be placed under the highest level of coronavirus restrictions starting Wednesday as infections rise rapidly in the capital
12:10PM ( 4 hours ago )
The Latest: Louisiana starts 1st vaccinations at hospital
Louisiana administered its first coronavirus vaccines Monday at a New Orleans area hospital
11:48AM ( 4 hours ago )
AP Business - Industries
The Latest: Eswatini prime minister dies with COVID-19
The government of Eswatini has announced on Twitter that Prime Minister Ambrose Dlamini has died after testing positive for COVID-19
5:43AM ( 10 hours ago )
The Latest: CureVac begins phase 3 study of possible vaccine
German pharmaceutical company CureVac says it has enrolled the first participant in the phase 3 clinical study of its mRNA-based COVID-19 vaccine candidate
3:46AM ( 12 hours ago )
Trump says he's nixing plan for early vaccine at White House
President Donald Trump says he's reversing an administration directive to vaccinate top government officials against COVID-19 while public distribution of the shot is limited to front-line health workers and people in nursing homes and long-term care facilities
11:09PM ( 17 hours ago )
AP Business - Health Care
The Latest: 6 positive virus cases in latest EPL tests
The latest English Premier League tests have revealed six new positive tests for COVID-19
4:21PM ( 10 minutes ago )
Supreme Court won't revive Kansas voter registration ID law
The Supreme Court has rejected an appeal from Kansas that sought to revive a law requiring proof of citizenship to register to vote
4:18PM ( 13 minutes ago )
The Latest: Biden to say abuse of power can't stop democracy
In a prime-time speech after the Electoral College vote, President-elect Joe Biden is set to declare that “not even
4:09PM ( 22 minutes ago )
US agencies, companies secure networks after huge hack
U.S. government agencies and private companies rushed Monday to secure their computer networks following the disclosure of a sophisticated and long-running cyber-espionage intrusion
4:07PM ( 24 minutes ago )
US COVID-19 deaths top 300,000 just as vaccinations begin
The U.S. death toll from the coronavirus has eclipsed 300,000, just as vaccinations begin across the country
4:07PM ( 24 minutes ago )