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Wall Street rose sharply on positive vaccine news from pharmaceutical giant Pfizer. It was a good day for cruise, airline and hotel stocks, but in the end, the spirits at the Nasdaq tech exchange soured.
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US equity markets received a strong boost from inception on Monday after Pfizer and Biontech announced a 90 percent effective corona vaccine.
The Dow Jones Industrial Average rose 834.6 points on Monday, the biggest gain in five months, according to CNBC.
The Dow Jones index has already set a record, with a price of more than 29,933 points. This surpasses the previous record in February, before the pandemic and the subsequent shutdown that sent global markets downhill.
Here’s how Wall Street’s leading stock indices opened after just under half an hour since the stock market opened:
- Dow Jones rises 4.25 percent
- S&P 500 up 2.97 percent
- Nasdaq Comp rises 0.77 percent
As the hours passed, the mood in parts of Wall Street gradually soured. Nasdaq went into the red for the last hour and the indices ended like this:
- Dow Jones rises 2.95 percent
- S&P 500 up 1.17 percent
- Nasdaq Comp down -1.53 percent
The Nasdaq slump was driven by falls in the prices of heavyweights like Facebook, Amazon, Netflix, Microsoft and Apple.
CNBC explains the relatively weak development of the Nasdaq heavy-tech index and investors opt out of growth stocks and “stay-at-home” stocks – that is, stocks of companies that make money keeping people home, both for work as for entertainment.
At the same time, Nasdaq has clearly risen most of the top three indices on Wall Street so far this year, and is up more than 30 percent since the new year.
– We have been waiting for this day
Shares in Pfizer started up 12.28 percent but ended the day up 8.2 percent. Biontech jumped 20 percent at the open on Wall Street, but finished just 14 percent.
“The first results from our phase 3 testing of the COVID-19 vaccine provide early indications that the vaccine is capable of preventing COVID-19,” said a statement from Pfizer CEO Albert Bourla.
Many on Wall Street are applauding the news as a sign that the pharmaceutical industry will soon have a viable way to control a disease that has weighed on the US economy for much of 2020 and killed more than 230,000 Americans, writes CNBC.
– This is very positive news for the market, chief strategist Erica Blomgren told SEB on Monday at E24.
Chief Investment Officer Leif-Rune Rein at Nordea Liv says he hasn’t seen any vaccine news that means more to the market.
– We were waiting for the day when this news would arrive, said Rein by phone with E24.
Cruise and aircraft stocks rose
This is a breakthrough that could make the vaccine available for use before the end of the year if pharmaceutical authorities give it the green light, writes the Financial Times.
Airplanes, cruises and other actions that have been hit hard by coronary restrictions and pandemics received a long-awaited boost Monday.
Carnival cruise ship shares rose nearly 40 percent on Monday. The MGM Resorts hotel and casino group was up 15 percent.
American Airlines and United Airlines rose 22 and 24 percent at the opening of the stock market on Monday. Delta Airlines and Spirit Airlines rose 20.37 and 21.31 percent. Southwest Airlines and JetBlue Airways increased 21.8 and 26.15 percent, respectively.
The rise in shares has slowed somewhat during the day. American Airlines, for example, finished with 15.2 percent.
However, the results do not mean that a vaccine is imminent. Preliminary results are based on just 94 infections that have so far been recorded among 44,000 people in the US and other countries, NTB writes.
Stock markets have already developed positively on Monday after Joe Biden won the US presidential election, while it is unclear whether the Democrats will be able to take control of the Senate.
The Oslo Stock Exchange ended at a plus
Blomgren is referring to the news that Pfizer has conducted a larger study in phase 3, which shows that 90 percent of coronary infections can be counteracted.
– The US “Food and Drug Administration” (Agency of the US Federal Department of Health and Social Affairs, Journal.anm.) Will be asked to get expedited approval; They will apply for it later this month.
Just before the presidential election in the United States, a growing trend of infection has raised concerns, Blomgren says.
– This has caused major shutdowns, especially in Europe, which have economic consequences. The second wave we are seeing now shows that the financial recovery will be very fragile until a vaccine is applied.
Blomgren notes that the market has developed positively even before today’s vaccine news, based on the election results.
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The price of oil and the Oslo Stock Exchange immediately after the notification of an effective vaccine
European stock markets also received a boost on Monday.
The main index in Oslo ended up 4.4%, while the Frankfurt and Paris stock exchanges finished 4.94 and 7.57%, respectively. The UK 100 index in London rose 5.03 percent.
There is also an increase in oil prices. Just after 4 p.m., a barrel of Brent oil from the North Sea costs $ 42.96, representing an increase of 8.32 percent for the day.
The Norwegian crown got stronger
The crown is strengthening with a greater appetite for risk in the market and higher oil prices.
One dollar costs 9.05 crowns, after the crown strengthened by 10 crowns during the day. One euro costs NOK 10.68, after the crown strengthened by 18 øre.
“The World’s Largest Interest Rate” Is Rising: The interest rate on US government debt with a ten-year maturity has risen 12 percent on the day. This indicates that investors are moving from bonds to equities, daring to take more risks again.
