Dow Jones weakens: US investors are betting on Novavax and gold

The US exchanges are all posting losses, even the Nasdaq is turning negative after record highs in the meantime. However, two divisions remain safe investments: gold and biotech companies working on vaccines.

Some US investors have cashed in on Wall Street after the recent price rally on Tuesday. The Dow Jones Industrial ultimately fell 1.51 percent to 25,890.18 points, closing just above the daily low it had just reached. The broader S&P 500 dropped 1.08 percent to 3,145.32 points. The technology-heavy Nasdaq 100, which at times had set a new record high at just over 10,700 points, ended trading at minus 0.75 percent to 10,524.01 points.

"There are some signs of an economic recovery and at the same time there is concern about the increasing number of virus cases in certain states," said market analyst Brian Levitt of the asset manager Invesco. "All of this means that the market starts to move but doesn't really find a direction."

The state of Florida reported more than 6,000 new coronavirus cases. In the Greater Miami area, the mayor ordered restaurants and bars to be closed again. Despite the spreading pandemic, the US stock markets had previously grown five days in a row.

Profit-taking also occurred on Europe's stock exchanges. On the German stock market, price drops of the Dax heavyweight Bayer also depressed after a US judge expressed doubts about part of the multi-billion dollar comparison package about the controversial weed killer glyphosate. The Dax lost 0.9 percent to 12,616 points.

Gold price 1,795.14

"The hope for a V-shaped recovery in the economy is still very high," said investment strategist Michael Hewson from brokerage firm CMC Markets. "However, concerns about growing coronavirus infections are dampening it."

The remained accordingly "Anti-crisis currency" gold asked further. The price of the precious metal was $ 1796.09 per troy ounce (31.1 grams) as expensive as it has not been since November 2011. Investors worried about the skyrocketing stock prices, especially in the US tech sector, and the contrasting economy, which is deeply in recession, says market analyst Fawad Razaqzada of broker ThinkMarkets. The risk of the speculative bubble bursting increases, which is why low-risk investments are in demand. The recovery rally on the stock markets is fueled by the flood of cheap central bank money.

On Tuesday, US investors mostly sold financial stocks and stocks from the travel and tourism sector, which was particularly affected by the pandemic. Papers from United Airlines and American Airlines fell by up to seven and a half percent. Title of the Aircraft manufacturer Boeing lost 4.5 percent. The cruise operators too Royal Caribbean and Norwegian cruise noted weaker.

Investors, on the other hand, did business hoping for vaccines and medicines for the coronavirus. The billion dollar funding pledged by the US government drove the shares of the pharmaceutical company Novavax by more than 31 percent in height. Washington has contributed $ 1.6 billion to the development and production of a coronavirus vaccine. The company too Regeneron Receives $ 450 Million Grant for Clinical Trial Antibody Therapy That May Consider Medication or Protection Against Covid-19 Regeneron shares rose by almost two percent.

Retailer shares Walmart rose by almost seven percent. According to media reports, the group is about to launch a competition program for the online retailer's prime service Amazon. Amazon shares fell 1.8 percent.

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