The larger S&P 500 closed 0.77% higher while the Nasdaq Composite Index gained just over 2% on the day.
Actions kicked off the week with a massive rally sparked by promising results from phase three trials for Pfizer and BioNTech’s COVID-19 vaccine candidate.
This has seen investors pull out of tech stocks and other ‘home’ plays and buy stocks of companies that have been hit by the pandemic, such as airlines, hotels, cruise lines, cinemas.
But technology was all the rage again on Wednesday as investors scoured for bargains.
The encouraging news on the vaccine front came amid a grim rise in infections in Europe and the United States.
Europe’s major economies have already reintroduced business-undermining lockdowns to curb the surge in COVD-19 cases.
In the United States, where new infections average 120,000 per day, restrictions have been ordered in New York City, California and parts of the Midwest.
Meanwhile, the economic scars of the initial months of the pandemic deepen as millions of Americans struggle to make ends meet.
The economic surge of some $ 3 trillion in aid against Congressional viruses earlier this year has all but subsided, and Washington has yet to adopt a new stimulus package.
Social safety nets enacted earlier in the year are expected to expire by the end of the year, including the CDC’s moratorium on evictions.
Meanwhile, the political divide in Washington, DC is intensifying as President Donald Trump has yet to concede defeat to President-elect Joe Biden. Trump and his supporters continue to make unsubstantiated allegations of voter fraud, and his campaign has launched more than a dozen legal challenges to the voter count in various states.
Among the actions that hit the headlines on Wednesday:
Lyft Inc shares closed just under 1% after the transportation and delivery app announced it was working on a new service in the burgeoning food safety market.