Markets ended lower on Wednesday as tech stocks took a hit and investors grew impatient over the prospects of a fresh round of fiscal stimulus. However, all three indexes hit fresh intraday records before retreating to end the day in red.

How Did The Benchmarks Perform?

The Dow Jones Industrial Average (DJI) dropped 0.4% or 105.07 points to end the day at 30,068.81. Earlier in the day, the index was up by over 100 points.The S&P 500 declined 0.8% or 29.43 points to finish at 3,672.82. The Technology Select Sector SPDR (XLK) was the biggest loser, declining 1.9%, followed by the Communications Services Select Sector SPDR (XLC), which dropped 1.2%. Eight out of the 11 sectors of the benchmark index closed in negative territory.

The tech-heavy Nasdaq fell 1.9% or 243.82 points to close at 12,338.95. Shares of Apple, Inc. (AAPL Quick QuoteAAPL - Free Report) declined 2.1%, while Facebook, Inc. fell 1.9%. Apple and Facebook each carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

The fear-gauge CBOE Volatility Index (VIX) was up 4.6% to 21.62. A total of 12 billion shares were traded on Wednesday, higher than the last 20-session average of 11.46 billion. Decliners outnumbered advancers on the NYSE by a 1.09-to-1 ratio. On Nasdaq, a 1.87-to-1 ratio favored declining issues.

Tech Stocks Take a Hit

Major indexes gave up the gains after touching fresh record highs earlier in day, led by a massive selloff in tech stocks as investors once again renewed buying stocks that had taken a hit during the pandemic. The renewed buying of the stocks was in hopes of a fresh round of fiscal stimulus that investors believe could help revive the economy.

Moreover, positive news on the vaccine front over the past few days have once again started raising ropes that the economy may be back on recovery path soon. Investors are also waiting for the Food and Drug Administration meeting scheduled to be held on Thursday, where the next step toward the possible authorization of Pfizer, Inc.’s (PFE Quick QuotePFE - Free Report) COVID-19 vaccine is likely to be taken.

Wait for Stimulus Continues

Impatience among investors grew further on Wednesday as the wait for a fresh round of financial aid continues. The indexes gave up their initial gains on Wednesday after Senate Majority Leader Mitch McConnell said that Republicans and Democrats are still in talks and are trying to come to agreement on the much-anticipated financial aid that investors believe could help in bringing back the economy on track.

McConnell’s comments came after Treasury Secretary Steven Mnuchin proposed a $916 billion stimulus package in front of House Speaker Nancy Pelosi on Tuesday. Democrats, however, prefer a bipartisan $908 billion financial aid package. McConnell also said that Democratic congressional leaders are no cooperating much, which further dented investor spirit.

Economic Data

The Labor Department said on Wednesday that US job openings increased in October to a three-month high. Available positions increased 6.65 million in the month from a revised 4.9 million in September. 

However, it also stated that there was also a rise in layoffs. Layoffs and discharges jumped to 1.68 million in October from 1.44 in the month earlier.  A total of 3.09 million people quit their jobs in October.

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