The Dow Jones rallied toward 28,000 today after Vladimir Putin claimed Russia developed the world's first coronavirus vaccine.
The Dow Jones crossed another milestone today, trading above 28,000 for the first time since February.
Vladimir Putin ignited the rally by claiming Russia had developed a viable coronavirus vaccine, though stocks later crashed into the red as the tech sector collapsed.
Up more than 300 points at one point today, the Dow headed for a much smaller gain in late afternoon trading. Even so, a flight to value helped the index outperform its tech-heavy peers.
As of 3:29 pm ET, the Dow Jones had gained 41.49 points or 0.15%, bringing the index to 27,832.93.
The S&P 500 erased an earlier rally, falling 0.19% to 3,354.05. The Nasdaq, which spent almost the entire day in decline, ultimately fell 0.98% to 10,860.95.
While stocks struggled, precious metals outright tumbled. Silver crashed 12%. Gold plunged more than 5%.
Helping fuel the fleeting Dow Jones feeding frenzy on Tuesday was a rather murky report from Russia that Vladimir Putin had approved a “world first” coronavirus vaccine. The announcement was short on details and long on optimism. U.S. scientists are highly skeptical.
Video: Russia claims it won the race to produce a viable coronavirus vaccine
Nonetheless, for all its secrecy, Russia has the scientific resources to come up with a vaccine. That may be why investors are giving the idea some credence.
Here’s what Putin said about the alleged breakthrough:
A vaccine against coronavirus has been registered for the first time in the world this morning. I know that it works quite effectively; it forms a stable immunity.
The Russian leader added that one of his daughters had taken the immunization.
China, an ally of Russia, has reportedly been vaccinating members of its military for some time. Wall Street bulls hope an effective – and safe – coronavirus vaccine or treatment will be available in the West soon.
Video: Cramer thinks Wall Street believes Putin
It was a counter-cyclical day in the Dow 30, as tech struggled versus value.
Apple, the Dow’s heaviest-weighted stock, crippled the index’s rally in late afternoon trading. AAPL shares fell 2.5%, while fellow tech giant Microsoft dropped 1.8%.
Warren Buffett may have helped catalyze the rotation into value. He recently bought back a sizeable amount of Berkshire Hathaway stock.
One of Buffett’s significant holdings, JPMorgan Chase, was the best performing member of the Dow Jones. JPM shares soared 3.8% today.
Last modified: September 23, 2020 2:19 PM