Dow Falls on Negative Vaccine News
The Dow ended its four-day winning streak following negative vaccine news and fading hopes for US government stimulus.
Johnson & Johnson had paused all trials of its vaccine, including the Phase 3 trial it began in the US one month prior, as a study volunteer got an unexpected illness. Additionally, Eli Lilly said its late-stage trial of a coronavirus antibody treatment has been paused by US health regulators over safety concerns.
As hopes for a vaccine fade, so do hopes for consensus on US government stimulus. As President Trump Congress urged lawmakers to go large on further coronavirus stimulus, Senate Republicans have expressed concern over the immense size of the $1.8 trillion fiscal package. Senate Republican leader - Mitch McConnell said a $500 billion stimulus bill will be introduced in the Senate next week.
In other news:
⁃ Striking beginning of earnings’ season, JPMorgan and Citigroup fell 1.5% and 5%, respectively
⁃ Apple shares were seen 3% lower despite the major reveal of their new 5G-enabled iPhone range
⁃ Amazon pared gains to end flat as its Prime Day event, expected to generate $7.5 billion in sales (up 42% from a year earlier), is underway
⁃ Disney gained 3% after reporting that it would reorganize its media and entertainment businesses to increase the growth of its streaming services
All in all, The Dow fell 0.55%, S&P 500 - 0.61%, while Nasdaq saw a 0.10% fall.
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