rain.png
Wednesday May 12th, 2021 10:01AM

Stocks dip as trading starts for year of great expectations

By The Associated Press
Related Articles
  Contact Editor

NEW YORK (AP) — U.S. stocks are holding close to their record highs Monday, as trading gets underway in a year where the dominant expectation is that a powerful economic rebound will eventually sweep the world.

The S&P 500 was flipping between small gains and losses in the first few minutes of trading and was down 0.2%, as of 9:58 a.m. Eastern time.

The Dow Jones Industrial Average also edged down from its record set last week and was 94 points lower, or 0.3%, at 30,511. The Nasdaq composite was 0.1% lower.

Most European and Asian stock markets were higher, while Treasury yields climbed in a signal of rising expectations for economic growth and inflation.

Optimism about a better future coming thanks to vaccines has been strong enough to paper over concerns about the present, as the pandemic worsens around the world.

The United Kingdom has been particularly hard hit by a new variant of the coronavirus that appears to be much more contagious. On Monday, the United Kingdom became the first nation to start using the COVID-19 vaccine developed by Oxford University and drugmaker AstraZeneca.

In the United States, regulators have already approved two other vaccines. China last week gave the greenlight for its first domestically developed vaccine. Others are also being tested.

The hope is that vaccines will allow daily life around the world to slowly get back to normal. That's helped spark a recovery for stocks of travel-related businesses, smaller companies and other industries left behind for much of the pandemic.

The Russell 2000 index of smaller stocks was leading the market Monday. It was up 0.2%.

Even though infection rates and hospitalizations are now at such frightening levels, investors are betting that ultralow interest rates provided by the Federal Reserve and financial support for the economy recently approved by Congress can help tide the economy over until vaccinations become more widespread.

Governments might throw less stimulus at their economies than last year, but policy is “still at a very loose setting,” which supports stock prices and lending, said Kerry Craig of JP Morgan Asset Management in a report.

“Investors should look through the bumpier start to the new economic cycle and focus on the improved earnings outlook,” Craig said.

Of course, many risks remain for the market. Prices have climbed enough that critics say they may too expensive, particularly if the big rebound in corporate profits that investors expect to occur later this year doesn’t materialize.

Politics is also still a wild card. Two runoff races in Georgia on Tuesday will determine which party controls the Senate. President Donald Trump also is continuing his push to reverse the results of the free and fair election that saw him lose to Democratic president-elect Joe Biden.

In European stock markets, France’s CAC 40 gained 1.5%, and Germany’s DAX returned 0.9%. The FTSE 100 in London jumped 2.7%.

In Asia, Tokyo’s Nikkei 225 lost 0.7% after Prime Minister Yoshihide Suga said a state of emergency was under consideration for the Japanese capital and three surrounding prefectures due to surging virus caseloads.

Suga called on restaurants and bars to close by 8 p.m. and said it would be difficult to restart a travel promotion program that was suspended last month. He said the government would expedite approval of coronavirus vaccines and begin providing injections in February.

South Korea’s Kospi rose 2.5%, Hong Kong’s Hang Seng gained 0.9% and stocks in Shanghai climbed 0.9%.

In the bond market, the yield on the 10-year Treasury rose to 0.94% from 0.89% late Thursday. Markets were closed Friday for New Year’s Day.

___

AP Business Writer Joe McDonald contributed.

  • Associated Categories: Associated Press (AP), AP Business, AP Business - Economy, AP Business - Financial Markets, AP Business - Industries, AP Business - Health Care
© Copyright 2021 AccessWDUN.com
All rights reserved. This material may not be published, broadcast, rewritten, or redistributed without permission.
France's go-slow coronavirus vaccination strategy backfires
France’s cautious approach to its virus vaccine rollout appears to have backfired
10:15AM ( 6 minutes ago )
EU rejects criticism for slow vaccine rollout across bloc
The European Commission has defended its coronavirus vaccination strategy amid growing criticism from member nations about the slow rollout of COVID-19 shots across the region with 450 million inhabitants
10:13AM ( 9 minutes ago )
UK first in world to start using Oxford-AstraZeneca vaccine
The U.K. has became the first country in the world to start using the COVID-19 vaccine developed by Oxford University and drugmaker AstraZeneca
10:10AM ( 11 minutes ago )
Associated Press (AP)
Iran starts 20% uranium enrichment, seizes tanker in strait
Iran has begun enriching uranium up to 20% at an underground facility and seized a South Korean-flagged oil tanker in the crucial Strait of Hormuz, further escalating tensions in the Middle East between Tehran and the West
8:55AM ( 1 hour ago )
As post-holiday infections surge, Lebanon gears for lockdown
Lebanese officials are vowing to take strict measures amid calls for an immediate nationwide lockdown in the wake of a surge in coronavirus infections following the holiday season
8:45AM ( 1 hour ago )
Virus, more than Brexit fallout, worry in and near Gibraltar
Fears of disruptions following Britain’s departure from the European Union have been replaced by coronavirus-related restrictions on border traffic between Spain and Gibraltar
8:41AM ( 1 hour ago )
AP Business
Global stocks rise after Wall Street ends 2020 at new highs
Global stock markets and U.S. futures have risen on 2021’s first trading day, boosted by optimism about the rollout of coronavirus vaccines after Wall Street ended the year on a new high
3:47AM ( 6 hours ago )
Asian stocks rise after Wall Street hits new high
Asian stock markets have risen on 2021’s first trading day, boosted by optimism about the rollout of coronavirus vaccines after Wall Street ended the year on a new high
11:15PM ( 11 hours ago )
AP Interview: India bars virus vaccine maker from exporting
The Serum Institute of India has been contracted to make 1 billion doses of the Oxford University-AstraZeneca coronavirus vaccine
7:52PM ( 14 hours ago )
AP Business - Economy
AP Business - Financial Markets
UK ramps up inoculations with Oxford-AstraZeneca vaccine
Britain has taken another giant step in the fight against COVID-19, ramping up its immunization program by giving out the first shots in the world from the vaccine created by Oxford University and pharmaceutical giant AstraZeneca
3:35AM ( 6 hours ago )
UK to ramp up inoculations with Oxford-AstraZeneca vaccine
Britain is taking another giant step in the fight against COVID-19, ramping up its immunization program by giving shots from the vaccine created by Oxford University and pharmaceutical giant AstraZeneca
2:57AM ( 7 hours ago )
The Latest: Japan's prime minister weighs state of emergency
Japanese Prime Minister Yoshihide Suga said Monday vaccine approval was being speeded up and border controls beefed up to curb the spread of the coronavirus, and he promised to consider declaring a state of emergency
10:46PM ( 11 hours ago )
AP Business - Industries
The Latest: Ariz. gov. rejects call for online learning
Arizona’s Gov. Doug Ducey has rejected the state’s top education official’s call for Ducey to order public schools to use only online instruction for the next two weeks unless they have waivers from health officials
6:57PM ( 1 day ago )
The Latest: UK hits virus case record for 5th straight day
The U.K. has registered a record 57,725 daily coronavirus cases
2:28PM ( 1 day ago )
The Latest: U.K. hits record 57,725 daily virus cases
The U.K. has registered a record 57,725 daily coronavirus cases
12:34PM ( 1 day ago )
AP Business - Health Care
France's go-slow coronavirus vaccination strategy backfires
France’s cautious approach to its virus vaccine rollout appears to have backfired
10:15AM ( 6 minutes ago )
EU rejects criticism for slow vaccine rollout across bloc
The European Commission has defended its coronavirus vaccination strategy amid growing criticism from member nations about the slow rollout of COVID-19 shots across the region with 450 million inhabitants
10:13AM ( 9 minutes ago )
UK first in world to start using Oxford-AstraZeneca vaccine
The U.K. has became the first country in the world to start using the COVID-19 vaccine developed by Oxford University and drugmaker AstraZeneca
10:10AM ( 11 minutes ago )
‘Wonder Woman 1984’ adds $5.5 million in 2nd US weekend
In its second weekend in U.S. theaters, “Wonder Woman 1984” earned an estimated $5.5 million in ticket sales
9:45AM ( 37 minutes ago )
US stocks open flat following gains for global stocks
Wall Street is beginning 2021’s first trading day mostly flat, amid tempered optimism about the rollout of coronavirus vaccines
9:42AM ( 40 minutes ago )