A return of risk appetite following encouraging economic numbers and hopes of new coronavirus relief package and even a vaccine boosted the 500-stock index for much of the trading day on Tuesday.  However, the S&P 500 ended the day down 0.8% — snapping a seven-day winning streak — as technology stocks dropped. 

The S&P 500 has rallied more than 52% since its March low and is 1.8% from its record high. 

Sentiment over a coronavirus vaccine was lifted after local news agencies reported Russian President Vladimir Putin claimed the country had given regulatory approval for the world’s first Covid-19 vaccine. While there was skepticism about whether Russia had developed a safe vaccine so quickly, the news triggered optimism from investors about the race for an inoculation and perhaps that the market isn’t pricing in how quickly a valid one could be ready. This all led to traders piling into names that would benefit from the economy reopening at the expense of tech stocks.

As the day went on however, the tech selling grew and eventually took the whole market down.

Tech shares struggled, with Facebook and Amazon each falling more than 2%. Netflix slid 3% and Microsoft pulled back by 2%.

U.S. inflation data is set for release on Wednesday along with earnings from Cisco Systems and Lyft.

Plan A : Short if market failed to support above 3339.25. Targets are 3312.25, 3285.50 and 3261.25.

Plan B : Long if market doesn't retrace much and supported firm above 3339.25. Targets are 3358.50, 3375.25 and 3399.25.

U.S. stock futures rose slightly in overnight trading and pointed to gains at the open on Wednesday after the S&P 500 closed lower for the first time in eight days.

After the bell on Tuesday, President Donald Trump said the U.S. government will purchase 100 million doses of Moderna’s experimental coronavirus vaccine, which is currently in late-stage human trials. 

The Nasdaq Composite was the underperformer, losing 1.7% as investors rotated out of technology stocks. Netflix, Microsoft, Amazon, Facebook, Alphabet and Apple all closed lower. 

Sentiment was boosted earlier in the day after local news agencies reported Russian President Vladimir Putin claimed the country had given regulatory approval for the world’s first Covid-19 vaccine.

The Labor Department is set to release key inflation data on Wednesday at 8:30 a.m. ET. Economists polled by Dow Jones are expecting the consumer price index increased 0.3% in July, after jumping 0.6% in June. Core CPI is expected to rise by  0.2%, or 1.2%  on an annualized basis, according to Dow Jones.

Earnings seasons continues on Wednesday with Cisco Systems, Lyft and SmileDirectClub all reporting after the closing bell. 

Plan A : Short if market failed to support above 10949.25. Targets are 10900.50, 10865.25 and 10819.25.

Plan B : Long if market doesn't retrace much and supported firm above 10949.25. Targets are 10974.25, 11001.50 and 11027.25.