Stocks gave back most of their gains Wednesday as a decline in tech shares offset positive news over a potential coronavirus vaccine and and a blowout quarter from Goldman Sachs.
The Dow Jones Industrial Average traded 87 points higher, or 0.3%, after rising more than 400 points earlier. The S&P 500 was up 0.3%. The Nasdaq Composite lagged, falling 0.5% as Amazon, Netflix and Alphabet all slid at least 1%. The Dow and S&P 500 were off their session highs as well.
Data published by the New England Journal of Medicine showed Moderna’s coronavirus vaccine produced a “robust” immune response, or neutralizing antibodies, in all 45 patients in its early stage human trial, according to newly released data published Tuesday evening in the peer-reviewed New England Journal of Medicine.
Shares of Moderna gained 6.8%. Stocks directly tied to an economic reopening jumped following the vaccine news. American Airlines, United Airlines, Royal Caribbean Cruise Lines all popped more than 10%.
“A COVID-19 cure/vaccine is a binary event for markets, and there are many ‘shots on goal’ on the healthcare side and only one needs to be successful,” said Tom Lee, founder and head of research at Fundstrat Global Advisors, in a note. “There are piles of cash seen in hedge funds, macro funds, mutual funds and individual investors. If the cadence of healthcare data continues to support some sort of cure, the focus on ‘re-closings’ ultimately fades.”
Several states, including California, have had to roll back reopening measures as coronavirus cases continue to rise. Confirmed cases in the U.S. total more than 3.4 million and deaths have surpassed 136,000, according to Johns Hopkins University.
Earnings season continued after Goldman Sachs reported quarterly numbers that easily beat analyst expectations. The company’s results were driven by a 93% surge in trading revenue. Goldman shares rallied more than 3%.
Bank earnings had been mixed leading up to Wednesday. JPMorgan Chase reported on Tuesday better-than-expected quarterly results on the back of a massive surge in trading revenue. Meanwhile, Wells Fargo suffered a $2.4 billion loss and slashed its dividend to 10 cents per share.
Apple contributed to the gains Wednesday, rising 1.6% after a European Union court annulled a 2016 European Commission order for the tech giant to pay $15 billion in taxes.
Stocks finished Tuesday’s volatile session on a high note with the Dow jumping more than 500 points to post its best day in two weeks. The S&P 500 jumped 1.3%, boosted by cyclical names sensitive to the economic recovery. The tech-heavy Nasdaq underperformed for a second day, rising 0.9% as the massive rally in Big Tech slowed down.
—CNBC’s Jesse Pound contributed reporting.
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