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NEW YORK: US stocks rose higher at the open on Monday (November 9), and all three major indices broke records after Pfizer announced that its vaccine was 90% effective in protecting against COVID-19 infections. 19.
By about five minutes into the trading session, the Dow Jones industrial average was up 5.4 percent to 29,839.45, beating the February 12 record of 29,551.42.
The S&P 500 overall rose 3.6 percent to 3,633.6, beating its September 2 record.
The high-tech Nasdaq soared to a new record, but then fell back and rose 0.4 percent to 11,986.12.
“Pfizer’s COVID-19 vaccine news has acted like an adrenaline rush for the markets, sparking one of the biggest single-day moves in global equities for a long time,” said Russ Mold, chief investment officer at AJ. Bell.
“A successful vaccine is more important than Joe Biden’s victory in the US election, as it would pave the way for restarting economic growth globally,” added Mold.
Sectors that had been hit the hardest by lockdowns, travel restrictions, and social distancing introduced to slow the spread of COVID-19 made dramatic moves as operators rushed to price what could be a game changer. for markets after months of being rocked by the pandemic.
Pfizer itself was up 17 percent in pre-open trading.
In the same way, stocks considered safe havens since COVID-19 began its deadly spread worldwide, suffered heavy losses, such as the Zoom Video conference platform or the UK food delivery champion Ocado.
The enthusiasm died down a bit, pushing back initial earnings, but maintaining a solid rally.
“It is a game changer because the possibility of a vaccine allows us to anticipate the reopening of the economy in 2021 and a strong and sustainable recovery,” said Emmanuel Cau, head of European equity strategy at Barclays.
“Many investors were waiting and positioned for this,” he added, noting that Joe Biden’s victory in the US presidential election had also lifted much of the uncertainty that clouded markets recently.
READ: Behind BioNTech and the Pfizer Vaccine, a discreet husband and wife ‘dream team’
The European banking index, plagued by low interest rates and widespread fear of defaults in the business world, made its biggest jump in a day since the European sovereign debt crisis in 2011, gaining 10.9%.
French banks Societe Generale and BNP Paribas led the way, with an increase of 18% and 14.5%, respectively.
On Wall Street, JP Morgan and Bank of America rose more than 10 percent in early trading.
European airlines, hard hit by pandemic-induced travel restrictions, rebounded strongly, with BA’s owner IAG up nearly 40 percent.
Earlier, Britain’s Transport Minister Grant Shapps told an online airport industry conference that Britain was making “good progress” with a plan to allow COVID-19 testing to shorten a quarantine period. 14 days for those returning from abroad.
The pan-European STOXX 600 index, which was already on the rise after Joe Biden’s victory in the US presidential election, jumped 4.5% to its highest level since March.
The relief was also palpable in commercial real estate with the prospect of shopping malls welcoming back hordes of consumers. French real estate group Klepierre and Unibail rose 36% and 22% respectively.
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