The reversal on Wall Street on Monday is seen mainly after recent highs as a rational technical change. In their predictions for 2021, many equity strategists have been bullish, citing economic and monetary help and potential coronavirus vaccine programs as supportive factors for next year’s turnaround in corporate income.
Analysts do not however, rule out a reversal and increased volatility in the short term, because the health situation remains alarming. New infections, which were already on the increase in recent weeks, as well as hospitalizations linked to Covid-19, may have been encouraged by the Thanksgiving weekend. Furthermore, over the long-awaited new business recovery plan, the political deadlock continues. Democrats continue to call for a massive $2 trillion-plus scheme, while Republicans are only able to accept a $500 billion minimum package.
As visits to physical stores were much lower than in previous years on Black Friday, though online sales jumped, Americans still seem to have taken some precautions.
U.S. customers on Friday spent $9 billion on the Internet, up 22 percent year-on-year ($7.4 billion in 2019), according to Adobe Analytics. In comparison, the number of visitors to physical stores dropped by 52 percent relative to Black Friday in 2019, according to Sensormatic Solutions, with more traffic drops in the northeast and west of the nation than in the south and midwest.
Moving towards an early vaccine, on the health front the Moderna (+20.24%) filed its applications for marketing authorizations in the United States and Europe for its vaccine against COVID-19 on Monday. The same was done last week by Pfizer (+2.90%) and its partner BioNtech (+12.96%), aiming to begin vaccinating before the end of the year. On Monday, the Financial Times announced that the UK is close to approving the Pfizer/BioNTech vaccine and that its rollout could commence with initial injections as early as December 7, within hours of approval.