US stocks plummeted on Wednesday, moving from a record high on Tuesday as rising coronavirus cases and a slowdown in job creation in the private sector weighed on investor sentiment.
The S&P 500 fell 0.3 percent a day after the benchmark set its 27th closing record for the year. The Nasdaq Composite fell 0.8% after also setting a record. And the Dow Jones industrial average fell by about 125 points, or 0.4%.
In recent weeks, the market has been driven higher by optimism that Covid-19 vaccines will help accelerate economic recovery. This has led to a jump in stocks that are sensitive to economic growth, including energy and banks.
“Obviously we have a great run, because just before the election results and yesterday we saw this record, so this is the reason for any consolidation,”
Shares are likely to continue to pick up in the coming weeks, despite estimates that appear to be strained, he added. “Why would you sell stocks when you know that political support, both fiscal and monetary, exists and will probably continue to exist?”