Stocks that stormed higher this month on hopes that a vaccine or two may get the global economy back to normal next year receded amid the worries.
MarketWatch has launched ETF Wrap, a weekly newsletter that brings you everything you need to know about the exchange-traded sector: new fund debuts, how to use ETFs to express an investing idea, regulations and industry changes, inflows and performance, and more.
Federal Reserve Chairman Jerome Powell on Tuesday cautioned that the economy faces significant challenges and uncertainty because of the increased spread of the coronavirus.
The pan-European STOXX 600 index rose 0.41% and MSCI's gauge of stocks across the globe gained 0.19%.
With a stock market value over $400 billion, Tesla will be among the most valuable companies ever added to the widely followed stock market index, larger than 95 percent of the S&P 500's existing components.
But the gains faded as traders anxious anew about the economic fallout from governments across the US bringing back varying degrees of restrictions on businesses in response to a recent surge in coronavirus cases.
Although, di company admission to di S&P 500 no go happun till December 21. Coronavirus counts and hospitalizations are up in states across the country, and health experts are warning about the possibility of a brutal winter. Additional lockdown orders would keep customers away from businesses.
Further still, there is some evidence to suggest making it into the prestigious S&P 500 can hurt a stock's performancebecause the increase in passive holders gives rise to less active shareholders which can lead to a series of other pitfalls. France's CAC 40 and Germany's DAX returned 0.5%.
Frankfurt and Paris both finished 0.5 per cent higher, while London added 0.3 per cent. Japan's Nikkei 225 fell 0.4%. South Korea's Kospi added 0.3%, Hong Kong's Hang Seng climbed 0.5% and stocks in Shanghai added 0.2%.
Prices for the 10-Year Treasury were unchanged, keeping yields at Tuesday's 0.87%.
USA stocks retreated from record closing highs on Tuesday, ending lower as surging COVID-19 cases, the growing threat of a fresh round of economic lockdowns and weak retail sales data dampened the euphoria caused by potential vaccine breakthroughs.