The DJIA fell 2.03% The S&P 500 was down 1.93% The Nasdaq Composite slipped 2.00%
Financials and energy led the market slump.
General Market Review
Johnson and Johnson’s one-dose vaccine only demonstrated a 66% overall efficacy rate in preventing against Covid-19. However, the vaccine is also 85% effective in preventing hospitalizations. Investors were disappointed in its effectiveness, causing the stock to fall over 3%.
Consumer spending fell 0.2% last month. This accounts for over two-thirds of US economic activity. While it was down last month, economics suggest that reopening the economy in the next couple months will increase service activity. The economy was driven by spending on goods with fiscal policy and Covid-19 already factored in. These issues will not be areas of focus for next quarter.
Because of continued fears of prolonged Covid restrictions affecting oil demand, oil prices fell flat today. ConocoPhillips was down about 2% and Chevron fell over 4%.