Business & Investment

Wall Street falls after J & J vaccine data, hedge funds and retail investors clash by Reuters

© Reuters. File Photo: Since the closure of the New York Stock Exchange floor when the coronavirus disease (COVID-19) broke out, traders wearing masks have been working on the first day of direct trading.

By Devik Jain and Shreyashi Sanial

(Reuters)-The US stock index fell on Friday after Johnson & Johnson (NYSE :) COVID-19 vaccine data hurt sentiment, but heightened conflict between hedge funds and retail investors. Concerns continued.

Johnson & Johnson’s share is 4 after pharmaceutical companies have stated that their single-dose vaccine is 72% effective in preventing COVID-19 in the United States, with a low rate of 66% observed worldwide. % Has fallen.

Results are compared to the high criteria set by the two licensed vaccines from Pfizer (NYSE :) Inc / BioNTech SE and Moderna (NASDAQ :) Inc was about 95% effective in preventing symptomatological disorders in a critical study with two doses.

Sam Stovall, Chief Investment Strategist at CFRA Research, said:

Moderna surged 10.2%, eased the Nasdaq decline. The Nasdaq Biotechnology Index has been added by 1.8%.

All three major indexes tracked the largest weekly decline since the end of October.

Concerns about short pressures increased after the army of retail investors returned to trading stocks GameStop Corp (NYSE :), AMC Entertainment (NYSE :) Holdings Inc, BlackBerry (NYSE :) Ltd.

The stock price of the company soared after Robinhood and Interactive Brokers (NASDAQ :) said it plans to relax the regulation after imposing a purchase suspension a day ago.

Investor favorites, including Apple Inc (NASDAQ :), were recently sold by hedge funds to cover billions of dollars in losses.

Apple, Inc (NASDAQ :), Microsoft Corp (NASDAQ :), Facebook Inc (NASDAQ :), Netflix Inc (NASDAQ :), Tesla (NASDAQ :) Inc and Alphabet (NASDAQ :) Inc fell between 0.7% and 2.3%.

“The market is vulnerable to declines, depending on how far it has advanced compared to the moving averages, and this Reddit activity was a catalyst that caused a sort of sold-out,” Stovall said.

Concerns over valuation expansion, a new coronavirus variant, and an increase in the number of cases of COVID-19 have caused investors to worry about pullbacks and increased volatility in the short term.

The first known US case of a South African COVID-19 mutant that was found to be partially resistant to current vaccine and antibody treatments was detected in South Carolina on Thursday.

At 10:07 EST, it decreased by 244.21 points (0.80%) at 30,359.15, decreased by 30.23 points (0.80%) at 3,757.15, and decreased by 125.18 points (0.94%) at 13,211.98.

Data show that US labor costs in the fourth quarter were higher than expected amid rising wages, confirming that inflation could accelerate this year.

Honeywell International Inc (NYSE :) fell 1.7% after quarterly profits fell 13%.

The New York Stock Exchange has a 1.55 to 1 ratio, and the Nasdaq has a 1.18 to 1 ratio, which is more than ahead of schedule.

The S & P Index recorded five new 52-week highs and no new lows, while Nasdaq recorded 31 new highs and eight new lows.

Wall Street falls after J & J vaccine data, hedge funds and retail investors clash by Reuters Wall Street falls after J & J vaccine data, hedge funds and retail investors clash by Reuters

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