Stocks Finally Bending to the Weight of News

by Rick Ackerman

Tech stocks hit a wall Tuesday, unable to remain afloat on a tide of stressful news. Although Wall Street would have us believe investors shouldn’t care who wins the election, the idea is preposterous. There is simply no way that a takeover of Capitol Hill by the Democrats could be perceived as good for business and the economy. But there’s a Catch-22 if Trump succeeds in reversing Biden’s ostensible victory, since a court decision paving the way for a second term could gravely unsettle America for years to come. A vaccine remains a bullish wild card, as the mindless herd demonstrated on Monday. Pfizer announced a drug that has been 90% effective in trials, touching off the most powerful one-day rally in stock-market history. The clinical basis for the drugmaker’s claim went largely unexplored initially, presumably because the stock market’s canny masters had every reason to avoid hard questions. But they surfaced on Tuesday nonetheless, causing shares to extend Monday’s retreat with big tech leading the way.

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