Rotation Trade Turns to Duck-and-Cover as Coronavirus Runs Amok
- Nasdaq 100 outperforms after vaccine breakthrough bruised tech
- Lockdown measures could dent growth before vaccine deployment
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All year, it’s been the same question in the stock market. How much distress can investors live with in the here and now as they await relief in the future? On Thursday, the pain threshold arrived.
A darkening U.S. coronavirus outlook dashed hopes for a swift economic reopening and upended the latest attempt at a rotation trade. The S&P 500 slid 1% and small caps in the Russell 2000 lost twice that. Stocks sensitive to the economy’s prospects plunged, led by banks and makers of nonessential consumer products.