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- Drug maker Moderna said futures on the S&P 500 and Dow Jones rose to intraday highs after its COVID-19 trial vaccine proved to be 94.5% effective.
- Crude oil futures surged more than%%, while technology stocks and gold declined and treasury yields remained stable.
- Moderna said its product could be stored for up to a month at typical fridge temperatures, reinforcing optimism that began last week with the announcement of a promising vaccine candidate by rival pharma group Pfizer.
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After U.S. stock futures jumped on Monday, drugmaker Moderna said its COVID-19 vaccine candidate has achieved 94.5% efficacy, reinforcing optimism that a tool to contain the virus may soon be at hand.
The findings come from a study of 1,000,000 people who compared volunteers receiving a two-dose regiment of Moderna shots with those receiving placebo. Preliminary analysis showed that the vaccine was 94.5% effective.
Futures on the S&P 500 and Dow Jones traded up 1.4-1.8% to a session high, while the technology-rich Nasdaq 100, which includes many beneficiaries of the epidemic-created work-im economy, surrendered early gains and fell 0.1%.
The next regular trading session saw a big jump in small-cap stocks. Futures in the Russell 2000 index were up 2.6%. Many of these are very much in touch with the underlying economy and can make the first profit from an effective vaccine roll-out.
Shares of Moderna were up 9% in pre-market trading, while shares of healthcare rivals Pfizer and AstraZeneca were down 1-1.8%. Shares of Johnson & Johnson rose about 1.4% in premarket trading.
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The modern vaccine has a crucial advantage over Pfizer’s shots. It can be stored at typical fridge temperatures (36 degrees Fahrenheit to 46 degrees Fahrenheit) for a month, while Pfizer’s shots need to be stored at -94 degrees Fahrenheit, which requires dry ice and a special container.
Stephen Gallo, head of European FX strategy at BMO Capital Markets, said in a note that vaccine-related headlines will dominate the news cycle between now and the end of the year. .
The dollar fell sharply against the emerging-market currency following the news.
Global equities are in tears after Pfizer’s announcement last Monday when its vaccine succeeded in the final stages of its clinical trial and proved effective in 90% of cases. The S&P 500 has reached a record high, while Tokyo’s Nikkei has reached its highest level in almost 30 years.
Crude oil extended benefits. Brent crude futures rose 3.5% to 2 2.88 a barrel, while WTI futures rose 3% to $ 1.70.
Meanwhile, U.S. Safe places like treasuries and gold came under pressure.
Gold fell 0.9% to 1,870.35 dollars near the bottom of the day, while the benchmark 10-year Treasury yield remained unchanged at around 0.887%.
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