NEW YORK, Nov 25 Reuters The SP 500 index closed lower on Wednesday as mounting U.S. layoffs in the wake of new mandated lockdowns to contain surging COVID19 infections dampened investor risk appetite.
The index and the Dow Jones Industrial Average retreated from record closing highs, pulled lower by cyclicals and small caps that drove the rally earlier in the week.
Pandemicresilient tech and techadjacent market leaders helped keep the Nasdaq afloat.
Its a growth day, flipping back the other way away from value, said Tim Ghriskey, chief investment strategist at Inverness Counsel in New York. Its this ongoing struggle between the virus and the vaccine.
Theres a reality setting in that while the vaccine will start being distributed fairly quickly, the virus isnt go away quickly and therefore the timeline for economic improvement is getting pushed out.
A wide range of data released in advance of Thursdays Thanksgiving holiday was dominated by a second consecutive week of unexpected jobless claims increases, suggesting that new restrictions to combat spiking coronavirus cases could hobble the struggling labor markets recovery.
The economic data is not good, and we know it wont be good for some time given this new wave of the virus, Ghriskey added.
The market appeared to be replaying the previous two weeks, which began with rallies driven by promising vaccine news but pivoted back to stayathome plays on nearterm pandemic realities and lack of new fiscal stimulus….