Stock Market Today: Early Rally Collapses as Market Digests COVID Closures
A growing number of COVID-related curfews and shutdowns overshadowed more positive vaccine data Wednesday, sending stocks spiraling into the close.


Conflicting COVID developments kept the major indices grounded for a second straight session.
Pfizer (PFE, +0.8%) and BioNTech (BNTX, +4.0%) on Wednesday announced a complete set of trial data showing that their COVID-19 vaccine is 95% effective (better than the 90%-plus efficacy reported from partial data last week). Later Wednesday, BioNTech CEO Ugur Sahin told CNN that the companies would file for an Emergency Use Authorization from the U.S. Food and Drug Administration on Friday.
That fueled market gains early on, but investors' focus shifted to America's escalating pandemic situation.

Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
The U.S. set a new daily caseload record with 155,000 reported Tuesday, and yesterday's 1,707 deaths were the highest since May 14, according to Johns Hopkins University data. Municipalities nationwide have begun implementing curfews, closures and other measures, and a new stimulus bill remains far out of sight.
The Dow Jones Industrial Average, which began the day solidly higher, dipped into the close, finishing with an 1.2% decline to 29,438.
Other action in the stock market today:
- The S&P 500 also dropped 1.2% to 3,567.
- The Nasdaq Composite lost 0.8% to 11,801.
- The Russell 2000 fell 1.3% off yesterday's record close, finishing at 1,769.
- U.S. crude oil futures closed 0.9% higher to settle at $41.80 per barrel.
- Gold futures finished lower again, settling at $1,873.90 per ounce, a 0.6% decline.
- Target (TGT) climbed 2.3% after the company crushed analyst expectations for its third quarter. Record adjusted profits of $2.79 per share were more than double year-over-year and beat expectations for $1.60. "The sustainability of its pandemic-driven surge in sales and earnings becomes the key question, particularly given uncertainty regarding future stimulus and waning retail sales growth," writes CFRA's Garrett Nelson (Hold).
- Boeing (BA, -3.2%), like the Dow, started the day higher but finished with losses. But it was still a good day for the aircraft manufacturer, as the Federal Aviation Administration provided a green light for its troubled 737 Max to return to the skies.
A Rotation? Maybe. A Swift Rotation? Absolutely Not.
We've discussed in recent weeks the idea that the market appears to be rotating away from certain stocks and toward others. There's the rotation from growth stocks into value stocks. And the rotation away from sectors such as technology and into the likes of industrials and financials.
Whether or not this rotation continues is up in the air. But it's not just a flip of the switch.
"(Investors) need to remember internal sector and industry rotations are frequently lumpy with entry/exit points that are very difficult to time," says Scott Knapp, chief market strategist at CUNA Mutual Group. "Staying diversified throughout is still the best play for long-term investors."
Fortunately, it has never been easier or cheaper to get wide stock (and bond) exposure. These 10 rock-solid mutual funds don't have too much in common – some are broad-market plays, others are narrow sector bets and still others deliver fixed income – but they all share attributes that matter: low costs, dependable management and top-tier performance. Check them out.
Kyle Woodley was long BA as of this writing.
Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more. Delivered daily. Enter your email in the box and click Sign Me Up.
Kyle Woodley is the Editor-in-Chief of WealthUp, a site dedicated to improving the personal finances and financial literacy of people of all ages. He also writes the weekly The Weekend Tea newsletter, which covers both news and analysis about spending, saving, investing, the economy and more.
Kyle was previously the Senior Investing Editor for Kiplinger.com, and the Managing Editor for InvestorPlace.com before that. His work has appeared in several outlets, including Yahoo! Finance, MSN Money, Barchart, The Globe & Mail and the Nasdaq. He also has appeared as a guest on Fox Business Network and Money Radio, among other shows and podcasts, and he has been quoted in several outlets, including MarketWatch, Vice and Univision. He is a proud graduate of The Ohio State University, where he earned a BA in journalism.
You can check out his thoughts on the markets (and more) at @KyleWoodley.
-
Four Surprising Signs You’ll Never Retire (and How to Fix Them)
Gearing up to retire? If any of these four signs ring true, you may want to make some changes before you do.
-
Stocks Rise After Trump-Powell Fed Tour: Stock Market Today
Nvidia hit a new all-time high intraday, but another renowned semiconductor name and some less iconic stocks were bigger movers Friday.
-
If You'd Put $1,000 Into Berkshire Hathaway Stock 20 Years Ago, Here's What You'd Have Today
Berkshire Hathaway is a long-time market beater, but the easy money in BRK.B has already been made.
-
If You'd Put $1,000 Into Procter & Gamble Stock 20 Years Ago, Here's What You'd Have Today
Procter & Gamble stock is a dependable dividend grower, but a disappointing long-term holding.
-
The Best Aerospace and Defense ETFs to Buy
The best aerospace and defense ETFs can help investors capitalize on higher government defense spending or hedge against the potential of a large-scale conflict.
-
Stock Market Today: Stocks Rise on Less Deadly Concerns
Markets are forward-looking mechanisms, and it's good when price action shows there's a future to look forward to.
-
Stock Market Today: Rally Extends on Good-Enough Expectations
Fiscal policy still has markets' attention, but taxes rather than tariffs and deficits rather than inflation are participants' primary focus.
-
Stock Market Today: Dow Falls 817 Points as Bond Yields Rise
Financial markets are once again focused on Washington, D.C., but taxes, not tariffs, are driving recent price action.
-
My Three-Day Rule for Investing: And If it Applies Now
Stock Market I've seen a lot in my career. Here's what I see now in the stock market.
-
Is It Time to Invest in Europe?
Stock Market Europe is being shaken out of its lethargy, militarily and otherwise, by Donald Trump's changes in U.S. policy. Should investors start buying?