Global equities moved mostly higher on Wednesday, led by a bounce from the Nasdaq Composite after two days of losses, although the Dow Jones Industrial Average drifted lower by the end of trading.
Big Chinese technology names took a hit on concerns over a new law aimed at curbing their powers. Shares of Alibaba lost 9.8% in regular trading in Asia (though its ADRs’ declines were smaller), and steep losses remained for Tencent and JD.com as well in Shanghai, in a second day of selling for big-name Asian technology stocks over proposed regulations aimed at the sector. That follows last week’s Hong Kong-Shanghai planned dual listing for Ant Group that was suspended by authorities.
The China CSI 300 dropped 1% and the Shanghai Composite fell 0.5%.
Monday’s news that a Covid-19 vaccine is within reach has fueled optimism about the economic recovery in 2021, and helped drive a rally that began last week. A rally began last week as results of the U.S. presidential and congressional elections began to appear more certain.
Drugmaker Pfizer (ticker: PFE) and partner BioNTech’s (BNTX) news that their Covid-19 vaccine candidate was more than 90% effective in preventing the disease in preliminary results—has fueled gains for stocks geared to a recovery from the pandemic.
That has continued this week, with technology stocks bearing the brunt, though there were signs on Wednesday that investors may dip a toe back into those stocks.
“Even if market optimism remains globally high, some investors already think this week’s price moves on both safe havens and riskier assets were too sharp,” said Pierre Veyret, technical analyst at ActivTrades, in a note to clients.
Here were some of the biggest movers Wednesday:
Investors are buying a dip in high-priced tech stocks, especially as some of the secular growth trends. Zoom Video Communications (ZM) stock bounced 9.9% Wednesday after falling 25% in the past two days.
Lyft (LYFT) gained 1% after the company beat revenue and earnings estimates. Lyft reported a loss of 89 cents a share, beating estimates for a 90 cent loss. Revenue came in at $499.7 million, beating estimates of $489 million.
Tapestry (TPR) lost previous gains after getting an upgrade at Cowen to Outperform from Market Perform and a raised price target to $30 from $25 and ended down 2.5%.
State Street (STT) fell 2.2%, losing steam after Deutsche Bank raised its price target to $80 from $67 and upgraded the stock to Buy from Hold.
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