U.S. stock indexes fell sharply on Friday after COVID-19 vaccine data from Johnson & Johnson hurt sentiment, while a standoff between Wall Street hedge funds and small, retail investors weighed.
The Dow Jones Industrial average lost 620.74 points, or 2%, to 29,982.62. The S&P 500 shed 73.14 points, or 1.9%, ending at 3,714.24. The Nasdaq Composite Index tumbled 266.46 points, or 2%, finishing at 13,073.64.
Meanwhile, new trial results from Johnson & Johnson's coronavirus vaccine disappointed some investors because it was less effective on some variants, also hurting market sentiment.
J&J said its one-dose vaccine demonstrated 66% effectiveness overall in protecting against Covid-19. The vaccine was 72% effective in the United States, 66% in Latin America and 57% in South Africa after four weeks, the company said. The vaccine however offered complete protection against Covid-related hospitalizations.
Worries of a short squeeze grew after an army of retail investors returned to trade shares in GameStop Corp and Koss Corp. The stocks sky-rocketed after brokers including Robinhood eased some of the restrictions they had placed on trading.
The U.S. Securities and Exchange Commission warned both brokerages and social media traders that it was closely monitoring potential wrongdoing.
U.S. Treasury Secretary Janet Yellen on Friday again called for quick Congressional action on the Biden administration's proposed $1.9 billion coronavirus relief package, saying the measure was needed so Americans don't lose the ability to meet their basic needs like shelter and food.
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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)
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