Stocks reverse course after hitting new record highs

Wall Street reversed course on Tuesday, with stocks tumbling just one day after reaching new record highs.

Stocks soared Monday after early results from Moderna's Covid-19 vaccine trial indicated its vaccine is highly effective, giving investors plenty of opportunity to take some profits. Both the Dow and the S&P 500 closed at all-time highs, with the Dow ending just 50 points below the 30,000 mark.

But the exuberance faded Tuesday as investors faced a hard fact: While vaccines against the virus are good news for the medium- and long-term, they make little difference for the here and now. Given the resurgence in infections around the world, the winter is expected to be tough for businesses and various US states have already ramped up their restrictions on public life once again.

The Dow sank 1.1%, or some 320 points, mid-morning Tuesday, while the S&P 500 slipped 0.8%. The Nasdaq Composite was down 0.3%.

Economic data on Tuesday also showed October retail sales missed expectations, and economists are worrying about lower consumer spending in the winter months which could be bad news for the economy.

Meanwhile, various programs designed to relieve economic hardship for workers who found themselves jobless as a result of the crisis will expire at year-end. This benefits cliff is looming over the start to President-elect Joe Biden's term in January.