In the early morning of the 11th Beijing time, US stocks closed mixed on Tuesday. The Dow closed up 260 points, extending yesterday's rally. Technology stocks that led the market higher during the outbreak continued to be sold off and sectors related to economic recovery were sought after. The market continues to pay attention to factors such as coronavirus vaccine development and the US election.

The Dow rose 262.95 points, or 0.90%, to 29420.92; the Nasdaq fell 159.93 points, or 1.37%, to 11553.86; and the S & P 500 fell 4.97 points, or 0.14%, to 3545.53.

Terry Sandven, chief stock market strategist at U.S.Bank Wealth Management, said: "at the end of the year, the sector rotation in the market seems to be continuing. In the long run, we still prefer the technology, consumer discretionary and communications services sectors, but in the near term, as the economy is expected to improve, we believe that cyclical sectors will outperform the broader market. "

According to reports, Pfizer IncThe candidate coronavirus vaccine jointly developed by PFE and BioNTech (BNTX) has more than 90% efficiency in preventing virus infection in clinical trials. Driven by the news, U. S. stocks opened sharply higher on Monday, with the Dow up more than 1600 points and all three major stock indexes hitting an all-time high. But the Nasdaq closed lower on Monday as technology stocks and home concept stocks that outperformed during the outbreak were sold off.

UBSStuart Kaiser, head of equity derivatives research in the group, said: "I think the biggest surprise here is the high effectiveness of the vaccine." Before Pfizer Inc released the test data, we conducted a survey of investors and its effectiveness was widely expected to be about 50 to 75 per cent. Pfizer Inc announced that the effectiveness of this vaccine in preventing the virus is more than 90%, which I think is why the market reaction is so positive. "

Michael Hewson, chief market analyst at CMC Markets, said: "Pfizer Inc's research results are of course good news, with a 90% success rate much higher than expected, which is a much-needed lighthouse in a dark year for the global economy."

On Monday, other companies studying coronavirus vaccines also released some positive news. Eli Lilly and CoPharmaceuticals (LLY) has announced that its coronavirus antibody therapy for high-risk patients with mild to moderate symptoms has received emergency use authorization (EUA) from the U.S. Food and Drug Administration.

News of vaccine development boosted consumer confidence and pushed up share prices in the cruise, aviation and accommodation sectors.

But many of the technology stocks that led the stock market higher earlier this year were sold off on Monday and continued to come under pressure on Tuesday. Other safe-haven assets, such as gold, silver and Treasuries, tumbled on Monday and their prices stabilized on Tuesday.

Mark Haefele, chief investment officer of UBS Wealth Management, said investors needed to diversify their investments in cyclical stocks that lagged behind the market in 2020, while staying away from large technology stocks and "home-based" concept stocks. The next wave in the US stock market mainly comes from the freer flow of society and the end of political uncertainty after the US election.

Vaccine development news boosts market sentiment

Investors, corporate executives and politicians generally believe that the success of coronavirus vaccine research and development is an important cornerstone of the overall economic reopening and sustainable recovery. About 27 million workers, 22 percent of the U.S. workforce, are in occupations that require close contact, and they are more vulnerable to coronavirus pandemics and social distance orders, Apollo Global Management Chief Economist Torsten Slok said in a report.

Nevertheless, whether it is Pfizer Inc Pharmaceutical Company or Johnson & Johnson(JNJ), Moderna Inc (MRNA) and other companies are conducting late-stage clinical trials of the vaccine, even if it can be approved, its large-scale promotion will not be achieved within a few months.

Ryan Detrick, chief market strategist at LPL Financial, pointed out that the better-than-expected performance of Pfizer Inc vaccine means that the economy will restart at a faster pace. Coupled with the economic performance that has exceeded expectations many times before, the market is taking into account the expectation of a significant increase in economic activity in 2021.

Carter Henderson, a portfolio expert at Fort Pitt Capital, said: "the vaccine news is indeed in 2021, and as the number of coronavirus infections reaches a new high, we still have to face the darkest moment of the coronavirus epidemic. Vaccines don't solve all problems immediately. That is why we believe that fiscal stimulus is still possible. Therefore, if we can get the news of both the vaccine and the stimulus package at the beginning of next year, the US stock market will really 'rise'. "

The world continues its efforts to respond to the second pandemic. In the US, Bill de Blasio, mayor of New York City, said the city was "dangerously close" to the second wave of the epidemic, with the positive rate rising to more than 2 per cent. In Europe, Hungary announced more restrictions, closing restaurants (except takeout) and implementing distance education in secondary schools.

According to the Oxford strictness Index (Oxford strict index), France, Britain, Spain and Poland are under the strictest blockade in Europe. The index assesses indicators such as school and workplace closures and travel bans.

The economic impact of the coronavirus pandemic also continues. In its semi-annual Financial Stability report (Financial Stability Report) on Monday, the Fed warned that the US could face a wave of debt defaults and a "sharp fall" in asset prices because of the coronavirus epidemic and recession.

The general election in the United States

The market is still watching the US election: Mr Trump refuses to concede defeat, and the campaign is preparing a lawsuit to accuse it of vote counting fraud.

U.S. Senate Majority Leader Mitch McConnell said on March 9 that President Trump has the right to question the election results.

"it is clear that no state has been able to prove their own election results," McConnell said. At least one or two states have embarked on a recount, and I believe the president may launch legal challenges in at least five states. In the United States of America, all legitimate ballots must be counted and any illegal ballots cannot be counted. "

In the short term, uncertainty about the US election seems to be lingering.

Focus stocks

CureVac announced new developments in its COVID-19 vaccine development, and the subjects showed good tolerance.

Pfizer Inc and BioNTech continue to climb. The EU will buy 200m doses of vaccine from Pfizer Inc and BioNTech, with an additional 100m if necessary. BioNTech lost 88 euros per share in the third quarter, compared with 14 euros per share in the same period last year.

Multimedia fitness company Peloton has signed a multi-year fitness program content agreement with the famous singer Beyonce.

Novak Pharmaceutical's third-quarter revenue fell short of market expectations.

Boeing CoShares climbed after reports that the Boeing 737 MAX could be allowed to fly again as early as Nov. 18. The Federal Aviation Administration (FAA) will lift the suspension of Boeing Co 737MAX as soon as November 18, which will be a key step for Boeing Co, the best-selling model, to return to the market, according to media quotes. FAA director Steve Dickson said in an interview with the media on Monday that as long as Boeing Co proves that the problem that caused the crash has been solved, the review process will be completed "in the next few days."

Beyond Meat turned from profit to loss in the third quarter compared with the same period last year. Bernstein, a brokerage, cut its target price for Beyond Meat to $89 from $136.

Nikola's third-quarter loss per share fell short of market expectations.

According to reports, Amazon.Com IncFacing an antitrust lawsuit from the European Union against the use of seller data.

American Airlines Group is reported to be placing 38.5 million shares at $13 a share.

Independent research will be General Electric CoThe target price was raised to $9 from $6.9, with a rating held.

Other markets

On Tuesday, Europe's pan-European performance index closed up 0.93%, Britain's FTSE 100 index closed up 1.9%, Germany's DAX index closed up 0.8%, France's CAC index closed up 1.9%, and Spain's IBEX index closed up 3.8%.

Gold futures closed higher on Tuesday, partly recovering the huge losses suffered yesterday.

Gold futures prices fell sharply yesterday after Pfizer Inc reported that its candidate coronavirus vaccine was as effective as 90 per cent in phase III clinical trials.

But some investors believe gold rebounded on Tuesday in part because it fell too much yesterday and continued to be supported by factors that have supported it over the past few weeks and months.

"Monday's vaccine development news bodes well for the future," said Adrian Ash, head of research at BullionVault, but the drop in gold prices caused by it was "a bit excessive".

Monday's vaccine news led to a surge in market confidence and is likely to be maintained, he said, but it did not change the prospects for long-term weak growth, worsening government deficits and ultra-loose monetary policy, so gold prices will continue to be supported in the future.

Gold futures for December delivery on the New York Mercantile Exchange rose 22 cents, or 1.2%, to close at $1876.40 an ounce. The price of gold tumbled 5% yesterday.

Silver futures rose 76 cents, or 3.2%, to close at $24.462 an ounce. Silver futures tumbled 7.6 per cent yesterday.

Crude oil futures prices closed higher for the second consecutive day on Tuesday. Positive news on the development of coronavirus vaccines allayed concerns about weak energy demand in the future, pushing oil prices higher.

David Madden, a market analyst at CMC Markets UK, said that despite the sharp rise in oil prices yesterday, there were still questions about crude oil demand as many countries were currently implementing epidemic blockades and their energy demand had been hurt.

West Texas Intermediate (WTI) for December delivery rose $1.07, or 2.7%, to $41.36 a barrel on the New York Mercantile Exchange. WTI crude oil futures closed 8.5 per cent higher on Monday.