Stock futures rallied on Monday morning as traders took promising data on the victory of the leading COVID-19 vaccine candidate in the U.S. presidential election as well as President-elect Joe Biden, ending a one-day nail-biter in winning the candidate. White House.
The Dow’s contract surged 1,400 points, or more than 5%, to boost its sharp gains over the past week. Contracts on the S&P 500 surged more than 3%, while traders on the Nasdaq withdrew from software stocks and other technos as they included “stay-at-home” trading.
The company announced that its clinical trials showed that its vaccine candidate was more than 90% effective in preventing Covid-19 in participants who had no previous evidence of coronavirus infection, after the company announced that Pfizer (PFE) shares accounted for 12% of pre-marketing trades. Have bounced more than. . Shares of Byzer Natek (BNTX), which is working on a vaccine with Pfizer, jumped more than 14% during the opening session.
Biden, along with Vice President-elect Kamala Harris, is preparing to bring, among other key issues, major fiscal stimulus, health care, public sector investment, and a more measurable approach to foreign policy and trade. In his victory speech on Saturday, Biden pledged to work toward the goal of uniting a deeply divided nation to end “this terrible era of the past in America” and suggested that “if we decide not to cooperate, then We may decide to cooperate. “
So far, traders have speculated that some of Biden’s dubious “market-negative” prospects, such as the President’s move to raise corporate taxes, will be angered by the Senate, which is under Republican control. Georgia has two Senate races left and will not be decided until January, although forecast markets have so far given Democrats a relatively slim hurdle to win both seats needed for the party to gain a majority in the chamber.
Analysts at the BlackRock Investment Institute said in a note on Saturday that the split government would hamper the Biden administration’s ability to implement plans for large-scale monetary stimulus and legislation on public investment, taxes, healthcare and climate change. “We focus more on sustainability under a divided government, but through regulatory actions rather than spending on tax policy or green infrastructure. It also has the potential to return to potential trade and foreign policy – the US-China rivalry is poised to be enhanced due to bilateral support for a more competitive stance. “
Analysts added that “some fiscal stimulus seems possible” during the lame-duck session of Congress, although the size and scope of any forthcoming package is likely to be much smaller than what the United Democratic government could do.
“We are closely monitoring the financial response, as a premature return could set back the economic recovery that has so far dazzled.”
Other economists also expressed optimism that the stimulus package could pass before the opening day, even after months of sporadic discussions between Trump administration officials and congressional legislators.
“We are becoming increasingly optimistic that pressure from business leaders and weak Republican senators in 2022 will mean that something can pass before the end of the year, and preferably before the end of the month,” Inn Shepherdson, chief economist at Pantheon Macroeconomics, said in a note on Sunday. .
Meanwhile, among the high-flying tech stocks that have propelled most of the market this year, a biden presidential victory with a potential Republican Senate marks the “outcome of the Goldilocks election,” according to Budbush analyst Dan Ives.
“Investors in the U.S. / China should expect a reduction in tensions and a ‘decoupling path’ of the Cold Tech War, a sign of recovery for Apple Pal (AAPL) and CMS [semiconductor] The stocks are looking ahead, ”Ives said in a note on Saturday. He added that the concern of a strictly distrustful environment for big tech companies has also eased.
Biden will also take a more serious stance in the fight against the coronavirus epidemic, with the outbreak already taking the lives of more than, 230,000 Americans, more than Than 9 million in illness and dragging U.S. economic activity towards historic historic Nadir . As the vote count began last week, coronavirus cases in the United States reached alarming levels: more than 120,000 new cases were reported on Friday alone. Biden is set to announce a new 12-person coronavirus task force on Monday, according to Ios Xios and CNN reports.
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8:28 am ET: Biden applauds Pfizer vaccine progress, warns ‘fight against COVID-19 is still months away.’
President-elect Joe Biden in a statement Monday morning congratulated Pfizer for its work on the COVID-19 vaccine, but urged Americans to be vigilant in wearing masks and social distance to control the spread of the virus.
“The war against COVID-19 is still months away,” Biden said in a statement. The news follows a timeline previously announced by industry officials that vaccine approvals are expected in late November, if it is received, and some Americans will Even if the vaccine is given at the end of the year, it will still be several months before widespread vaccination in this country.
“That’s why the head of the CDC warned this fall that for the near future, masks are a more powerful weapon than vaccines against the virus.” “Today’s news does not change this immediate reality. Americans will have to rely on masking, distance, contact tracing, hand washing and other measures to keep themselves well protected until next year. Today’s news is very good news, but it does not change the fact. ”
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7:16 am ET: Down futures rise more than 1,400 points
The main move here in the equity markets was at 7:16 a.m. ET:
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S&P 500 Futures (ES = f): 3,629.40, up 119.5 points or 3.4%
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Dow futures (YM = f): 29,737.00, up 1,456 points or 5.15%
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Nasdaq 100 Futures (NQ = f): 12,144.25, up 98.25 points or 0.8%
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Monday at 7:10 a.m. and Monday: Pfizer, Bioentech says their Covid-19 vaccine candidate is more than 90% effective
Shares of Pfizer and German pharmaceutical company Bioentech rose on Monday morning after companies announced that their Phase 3 clinical trials showed that their Covid-19 vaccine candidate was more than 90% effective in preventing coronavirus in participants without evidence of previous infection.
Analysis of the trial evaluated 94 confirmed COVID-19 infections in approximately 44,000 participants.
The division of cases between vaccinated individuals and placebo recipients, 7 days after the second dose, indicates a vaccine efficacy rate of more than 90%, the companies said in a statement. “This means that protection is achieved 28 days after the start of vaccination, which includes a 2-dose schedule.”
The companies added that even though they had a total of two months of data to meet the agency’s safety requirements, they did not use the U.S. for their vaccine candidate’s Emergency Use Author Thoracicization. Plans to request the Food and Drug Administration. This is expected to happen in the third week of November.
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Afternoon: 01 :: 0100 and ET Sunday: Stock futures open higher after Biden declared the winner of the presidential election
Markets were the main move here, until 6:01 pm on Sunday.
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S&P 500 Futures (ES = f): 3,517.00, up 16.25 points or 0.46%
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Dow futures (YM = f): 28,334.00, up 130 points or 0.46%
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Nasdaq futures (NQ = f): 12,141.5, up 66.5 points or 0.55%
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