Stock futures pointed to a higher start Monday, with the S&P 500 and Nasdaq Composite building on last week’s record finish as investors appeared optimistic about a potential COVID-19 treatment.
What do key benchmarks do?
Futures on the Dow Jones Industrial Average YM00,
advanced 271 points, or 1%, to 28,131, while S&P 500 futures ES00,
rose 28.90 points, or 0.9%, to 3,421.50. Nasdaq-100 futures NQ00,
were 121.50 points, or 1%, at 11,682.50.
The S&P 500 SPX,
on Friday drove higher by 0.3% in light volume to end at a record 3,397.16, marking a 0.7% weekly progress. The Dow DJIA,
rose 190.60 points, or 0.7%, on Friday to end the week with a gain of less than one point at 27,930.33. The tech-heavy Nasdaq Composite COMP,
recorded a rise of 2.7% weekly, and finished Friday at 11,311,80, its 36th record finish of 2020.
What drives the market?
The Food and Drug Administration on Sunday said it had approved the use of convalescent plasma, the anti-anti-rich component of blood, taken from recovered COVID-19 patients, as treatment for serious coronavirus cases. Medical experts said the treatment could provide benefits for those fighting the disease, but that there is no definitive evidence of its effectiveness, while questions remain about when it should be administered and dosed.
President Donald Trump welcomed the move in a news conference on Sunday night after the administration accused the agency of failing to provide evidence of delay in approving it to undermine its re-election prospects.
The Financial Times also reported that Trump may instruct the FDA to grant the same type of approval to the Oxford University fax to be distributed by AstraZeneca AZN,
AZN,
“Markets have started the week on a happy note as news that President Trump has approved the need for plasma treatment for COVID-19 patents and is considering a rapid follow-up of a UK vaccine before the election has boosted sentiment,” said Raffi Boyadjian, investment analyst at XM, in a note.
Expectations of a breakthrough virus treatment have been a driving force behind the market’s crackdown on its pandemic-induced plunge earlier this year, Boyadjian said, although “there are no definitive results from any of the vaccines or treatments yet.” t are under development for the coronavirus and many investors have yet to wake up to the prospect that the pandemic could still be in a year or two. “
To read:Are stock market prices too high or underpricing a vaccine for coronavirus?
The S&P 500 returned to record highs last week, erasing a nearly 34% spot that took the U.S. benchmark from a record high of March 19 near the low of March 23, in a rally largely driven by shares of big tech companies who have seen their companies benefit from the pandemic, while shares of companies whose performance is more closely tied to the economic cycle have remained low, despite some recent streaks of performance.
Investors look forward to the annual Kansas City Federal Reserve Bank symposium. The event, typically held in Jackson Hole, Wyo., Will be held this year via webcast. Fed Chairman Jerome Powell was appointed to speak Thursday on how the central bank plans to achieve its twin targets of stable prices and maximum employment once the coronavirus pandemic is over.
Which files are in focus?
- AstraZeneca’s
AZN,
-1.38%
stock rose more than 3% on Monday, prompted by the report that U.S. regulators are considering quickly tracking the candidate for coronavirus vaccine for drugs. - Blackstone Group Inc. BX,
+ 0.91%
shares are in focus. Takeda Pharmaecutical Co. announced it would sell its consumer health care company for $ 242 billion ($ 2.3 billion) to the US private equity giant, The Wall Street Journal reported Monday. - Shares of various industrial company NN Inc.
NNBR,
+ 1.71%
grew 37% in premarket trading Monday after the company said it had agreed to sell its life-saving business from units of American Securities LLC in a deal worth $ 825 million.
What are other brands doing?
Proceeds from the 10-year Treasury note TMUBMUSD10Y,
TMUBMUSD10Y,
increased 0.8 basis point to 0.64%. Federal prices move upside down to yields.
Gold futures GCZ20,
rose, with the December contract rising 0., 6% at $ 1,958 an ounce on Comex. Oil futures CL00,
gained ground when a few tropical storms converged on the Gulf of Mexico, forcing the closure of offshore oil rigs for more than half of the region’s production.
The greenback was on the back foot, trading 0.4% down based on trading in the ICE US Dollar Index DXY,
In global stock markets, the CSI is 300 000300 from China,
rose 0.8%, the Shanghai Composite SHCOMP,
some 0.2% higher, and Japanese Nikkei NIK,
closed with a gain of 0.3%. The Stoxx Europe 600 SXXP,
jumped 1.7% and the UKX FTSE benchmark UKX,
advanced 1.8%, gets a boost following the FDA announcement.
.
