Wall Street turns green in early deals

The main Wall Street indices defied expectations on Wednesday by moving into positive territory shortly after the opening bell. In the early minutes of trading, the Dow Jones Industrial Average was up 0.89% at 27,746 while the S&P 500 jumped 1.31% to 3,375 and the Nasdaq climbed 1.85% to 11,048. Traders seem keen to kick off a rebound following the recent tech rout, while also shrugging off worries about coronavirus vaccines and trade tensions between the US and China. The higher open may also show that investors considered the Nasdaq’s correction to be a healthy one after it scaled record highs earlier this year, and could potentially be a temporary setback as opposed to a trend. 7.40am: Wall Street to open in the red Wall Street is expected to open lower but not too hard hit by the setback on the Oxford vaccine, which investors worldwide have shrugged off as something that can be resolved quickly. The UK Medicines and Healthcare products Regulatory Agency told Reuters on Wednesday it was reviewing all information with urgency to see if the trial can be restarted as soon as possible. Experts were not surprised by the hurdle, considering how lengthy and complex vaccine trials usually are. “This is unlikely to be the last setback on a clinical trial for a vaccine, and the market reaction seems to reflect that, however, it also means that the idea we will see a positive vaccine outcome by year end is optimistic at best,” said Michael Hewson, analyst at CMC Markets. US stocks are recovering after the beating tech stocks took on Tuesday, the first trading day of the US week. Analysts expected a correction of the Nasdaq following a remarkable year, rocketing 83% from pandemic low in March to the peak a week ago. “The world has changed a lot in a very short period of time and tech has undoubtedly been best placed to reap the rewards but the big problem is valuing a sector like this in the midst of the pandemic,” said Craig Erlam, analyst at OANDA. “The world will not return to what it was in February and it won't continue as it is now. And the void in between these two realities is vast, which makes valuing these firms more difficult than ever.” Four things to watch for on Wednesday: Share price reaction for clothing brand Lululemon Athletica Inc (NASDAQ:LULU) after the apparel maker reported better than expected results late on Tuesday In a similar vein, shares in workplace communication app Slack Technologies Inc (NYSE:WORK) will also be in focus after the company unexpectedly broke even in its quarterly results late yesterday Shares in jewelry firm Tiffany & Co (NYSE:TIF) after it filed suit against LVMH Moët Hennessy after the French group backed out of a planned US$16.2 billion merger claiming delay pressures from both Tiffany and the French government Political reaction following an announcement from Democratic presidential candidate Joe Biden that he will propose an offshoring penalty establishing a 28% corporate tax rate plus a 10% penalty surtax on profits for any American firm that sells products made overseas back to the US market