The S&P 500 Index was able to turn slightly positive by the end of Wednesday's negative trading day. Despite the Dow and Nasdaq falling lower, sentiment remained positive following the United Kingdom's approval of Pfizer's (NYSE: PFE)/BioNTech's (NASDAQ: BNTX) coronavirus vaccine for emergency use.
The market has been continuously encouraged as it heads into the end of the year by the rapid development and extraordinary efficiency of the vaccines produced by Pfizer and Moderna (NASDAQ: MRNA), with investors betting that the deployment of the shots will lead to rapid economic recovery in 2021.
Investors were also encouraged by multiple signals that Congressional lawmakers are ready to pass another U.S. stimulus bill. On Tuesday, a bipartisan group of Senator lawmakers unveiled a $908 billion proposal that was later shot down by Senate Majority Leader Mitch McConnell who favored a smaller relief bill, according to CNBC. However, House Speaker Nancy Pelosi and Senate Minority Leader Chuck Schumer said in a joint statement on Wednesday that a new bill should use Tuesday's proposal as the framework for further bipartisan discussions.
Meanwhile, U.S. private payrolls increased by 307,000 in November, according to ADP's monthly jobs report published Wednesday. The less-than-expected gain followed October's upwardly revised gain of 404,000. November's additions marked the seventh straight month of net payroll gains since the coronavirus pandemic brought historic job losses in March and April.
Here's how the market settled for the mid-week:
S&P 500 Index (NYSE: SPY): +0.18% or +6.56 points to 29,885.04
Dow Jones Industrial Average (NYSE: DIA): +0.20% or +61.12 points to 29,885.04
Nasdaq Composite Index (NASDAQ: QQQ): -0.05% or -5.74 points to 12,349.37
For Stocks, Workhorse (NASDAQ: WKHS) shares slid more than 21% after Trucks.com reported that the United States Parcel Service has again delayed its mail truck replacement contract, a contract that Workhorse is set expected to get a portion of. Palantir Technologies (NASDAQ: PLTR) shares also sharply fell after Morgan Stanley downgraded the stock to underweight, with the firm believing that the tech company is trading at a "significant premium" compared to its peers.
For Sector Performance, sectors ended Wednesday's session split with gains and losses as the broader market paused its ongoing vaccine rally. Energy (NYSE: XLE), keeping up with its volatile trend, was the top performer on Wednesday, jumping over 3%. Financials (NYSE: XLF) and Communication Services (NYSE: XLC) rounded out the top three positive gainers. Conversely, Real Estate (NYSE: XLRE) and Materials (NYSE: XLB) were the worst performances, falling over 1%.
For Commodities and Currency, the U.S. Dollar (NYSE: UUP) continued to be pressured by the increasing expectations for further fiscal stimulus from the U.S. government. While the dollar index remained mostly flat for the day, it did sink slightly lower to 91.146 in mid-day trading. Gold (NYSE: GLD) prices rose on Wednesday on the falling dollar as the yellow metal gained appeal as a hedge against potential inflation that may follow U.S. stimulus. Spot gold prices rose 0.7% to $1,827.63 per ounce, while gold futures settled 0.6% higher at $1,830.20 per ounce. Crude oil futures rose on Wednesday as investors continued to bet that OPEC and its allies will extend supply cuts for 2021. Traders were also encouraged by the United Kingdom approving its first coronavirus vaccine, boosting hopes for rapid demand recovery. International benchmark Brent Crude (NYSE: BNO) rose 2% at $48.36 per barrel, while West Texas Intermediate (NYSE: USO) settled 1.64% higher at $45.28 per barrel.
For Thursday, market participants will turn their attention to the Labor Department's weekly jobless report, as well as more insights into Congress's progress towards additional fiscal stimulus.