The Nasdaq has tumbled another 200 points ahead of the open as the index diverges from the Dow and S&P. The Nasdaq tech-stocks are seeing losses as the strong performance of ‘work from home’ stocks could be at threat from a successful vaccine.
Yesterday saw the Dow Jones up 2.95% as the news of a Pfizer coronavirus vaccine lit a fire under the bricks and mortar retailers that have been punished by lockdowns. The Nasdaq, however, was 1.53% lower and futures are showing another 1.80% loss for the index with less than two hours until the opening bell on Wall Street.
Yesterday’s rally was spurred by the news that Pfizer and BioNTech had found their vaccine to be 90% effective in a Phase 3 trial of over 40,000 patients. The news was accompanied by a statement from Anthony Fauci that the vaccine could be delivered by December in the U.S.
The news is hitting tech stocks and the worst hit are companies such as Zoom Video, which emerged with the lockdowns to trade at a valuation of over 100x sales. The stock was almost 18% lower yesterday, with the shares set to lose another 2% at today’s open. The end of the lockdowns in 2020 could also see companies such as Amazon lose value after they took market share from retail competitors as virus fears led to strong online shopping growth.
Nasdaq 100 Technical Outlook
The Nasdaq rallied on the vaccine news but has since tumbled to close below resistance at 12,000. Today sees the market moving lower and the 50-day moving average is in play at 11,500. The key support now will be at 10,800 – 11,000. The Investing Cube team is currently available to help all levels of traders with the Forex Trading Course or one-to-one coaching.
Nasdaq Daily Chart