Stock futures rose higher in overnight trading Tuesday after Moderna said its coronavirus vaccine produced antibodies in all patients in an early trial, raising hopes for a more economic recovery. fast.
Futures in the Dow Jones Industrial Average rose 300 points, pointing to a gain of 270 points in the opening on Wednesday. S&P 500 futures and Nasdaq 100 futures increased 0.7% and 0.5%, respectively.
Biotech Moderna’s possible vaccine to prevent Covid-19 produced a “robust” immune response, or neutralizing antibodies, in the 45 patients in their initial human testing stage, according to recently published data released Tuesday night in New England. Peer-reviewed Journal of Medicine.
Moderna shares rose more than 12% in after-hours trading on Tuesday. Shares directly linked to an economic reopening rose after news of the vaccine. American Airlines, United Airlines, Royal Caribbean Cruise recorded more than 4% each in extended operations.
“This should further enhance confidence that we are getting a robust immune response, in the sense that there should be greater confidence that this will be protective to some extent in the Covid transmission,” said Michael Yee, managing director of Jefferies. , on CNBC’s “Fast”. Money. “” This is all throughout our positive thesis and our opinion that both Moderna and Pfizer-BioNTech are definitely on track to receive a vaccine by the end of the year. “
Stocks ended Tuesday’s volatile session on a high note with the Dow jumping over 500 points to record its best day in two weeks. The S&P 500 jumped 1.3%, driven by cyclical names sensitive to the economic recovery. The tech-heavy Nasdaq underperformed for the second day, increasing 0.9% as the massive recovery at Big Tech slowed.
Investors will monitor another batch of corporate earnings results on Tuesday with Goldman Sachs, UnitedHealth, Bank of NY Mellon, US Bancorp and PNC Financial, all set to report ahead of the campaign.
The profits of the big banks so far have been mixed. JPMorgan Chase reported better-than-expected quarterly results following a massive increase in business revenue. Wells Fargo suffered a loss of $ 2.4 billion and cut its dividend to 10 cents a share.
Meanwhile, tensions between the United States and China continue to escalate. President Donald Trump said Tuesday that he signed legislation to impose sanctions on China in response to its interference with Hong Kong’s autonomy.
– CNBC’s Jesse Pound contributed reporting.
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