Vaccine news prompts tech portfolio reallocation

Yesterday’s price action on the tech-heavy Nasdaq which has been outperforming for months had Investors scratching their heads as they witnessed a negative correlation with the broad market as the vaccine news began to spread. While the Dow Jones Industrial Average made a new intraday all-time high, the Nasdaq was heading in the opposite direction. The bulk part of the slide was due to portfolio reallocation, as investors favoured airlines, travel and tourism.

But the fact of the matter is, there is no reason why a vaccine should hurt the tech giants, in fact, one could argue it’s a positive turn out, simply put, a vaccine points to normality and recovery.