Wall Street is set to open higher on Tuesday, with stock futures showing that investors were preparing for a rally based on expectations of a COVID-19 vaccine deployment.
Encouraged growth in the fight against coronavirus has set a major benchmark in light of recent record highs, and the Dow Jones Industrial Average is now within a psychologically charged 30,000 level gap, which would be a fresh record.
Investors are also excited about the news that President-elect Joe Biden is ready to appoint former Federal Reserve Chair Janet Yellen – well-regarded by Wall Street – as Treasury Secretary. Despite President Donald Trump’s attempts to challenge the vote in key swing states, markets also rallied on the news that the Trump administration would formally begin the transition process.
Nevertheless, a relentless wave of new COVID-19 infections has wreaked havoc on the global economy – with hospitalizations and subsequent deaths – leading drug makers have indicated that inoculation is just around the corner.
On Monday, Oxford and Ast Strazeneca (AZN) universities announced that their candidate has shown a 70.4% efficacy in two large-scale trails, if a smaller dose is used, then another dose, up to 90%, the company said.
However, Ast Strazeneka’s stock plunged after a Wall Street analyst questioned the effectiveness of the inoculation, raising questions about whether the U.S. would seek regulatory approval. Meanwhile, U.S. It plans to start rolling out the antibody cocktail made by Regeneron (REGN) as early as Tuesday.
“Dangerous bulls can be forgiven for being a little disappointed with the response so far from the very positive Astra-Zenica news about the vaccine,” Alan Rusky, macro strategist at Dutsch Bank, wrote in a research note on Monday.
Citing the market’s response to the vaccine’s earlier news, Rusky asked a question: “Is the vaccine mostly kept?” The short answer is no. “
In the immediate term, Ruskin said some market bets “start a struggle. However, if vaccines live up to their promise, their impact will dominate the real economic landscape for at least the next 18 months, “he added. Fully inoculated is beneficial to straightforward industries such as public travel, leisure and recreation. All have been destroyed by the COVID-19 social distance protocol.
AstraZeneca news came on the heels of Pfizer (PFE) and Biontech (BNTX) and announced plans to file with the US Food and Drug Administration for authorization for emergency use, which would allow their vaccines to be used in the US from December.
Expectations for a relatively fast vaccine rollout are expected to rise in 2021, while investors are uncertain about leading tech-heavy “stay at home” bets that previously held key names such as Netflix (NFLX), Amazon (AMZN), Zoom (Zoom) and other strong Were. . Both the Dow (5DJI) and the S&P 500 (SP GSPC) hit record highs last week as traders spread excitement over vaccine news.
Creating data to help sentiment that exceeded market expectations. U.S. Business activity has expanded at a rapid rate for more than five years this month. The survey was the latest indication that despite the rise in new infections, the economy continues to recover from the COVID-19 recession.
However, further COVID-19 infections, and Washington’s inability to agree to the stimulus of the warring parties, remain clouded from a near-term perspective. The current wave of the virus is filling the gloomy days of March and April, threatening to drag the holidays into the shadows and growth.
JPMorgan Chase’s economics team wrote in a lengthy research note last week, “This winter will be terrible, and we believe the economy will return to 1Q again, albeit at a ‘%’ annual rate.
“The economy is no longer a tailwind; Instead it is now a headache for growing restrictions on activity. The bank said the New Year’s Thanksgiving has threatened a further increase in cases during the holiday season.
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7:20 am ET Tuesday: Stock futures plunge, points open
The main moves here were in the equity markets, Tuesday at 7:20 and ET on Tuesday:
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S&P 500 Futures (ES = f): 3,601.50, +25.50 (+ 0.71%)
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Dow futures (YM = f): 29,833.00, +287.00 (+ 0.97%)
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Nasdaq futures (NQ = f): 11,942.75, +37.50 (+ 0.31%)
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Monday at 6:30 and Monday: Stock futures rise
The main moves here in the equity markets were, until 6:30 pm on Monday and until Monday:
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S&P 500 Futures (ES = f): 3594.50, +18.50
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Dow futures (YM = f): 29717, +171
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Nasdaq futures (NQ = f): 11953.50, +48.25
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