Stock futures surged on Monday morning as traders collected promising data on the top COVID-19 vaccine candidate as well as President-elect Joe Biden’s victory in the election President of the United States, ending a multi-day struggle over which candidate wins the White House.
Contracts on the Dow rose more than 1,400 points, or about 5%, setting the index to extend the sharp gains from last week. Contracts on the S&P 500 rose more than 3%, while contracts on the Nasdaq fell behind as traders turned their backs on software stocks and other tech names including “at home” trading. “
Pfizer (PFE) shares surged more than 12% in pre-market trading after the company announced that their clinical trial showed their vaccine candidate to be 90% more effective at COVID-19 prevention in participants with no previous evidence of coronavirus infection. Shares of BioNTech (BNTX), which is working on vaccines alongside Pfizer, climbed 14 percent higher in first trading.
Biden, together with Vice President Kamala Harris, is set to promote greater fiscal stimulus, a public option in healthcare, investment in sustainability, and a measured approach. foreign policy and trade, among other important issues. And in his winning speech on Saturday, Biden promised to work towards these goals with an eye to unify a deeply divided nation, calling for an end to the “era of grim evil. This is in America “and emphasized that” if we can decide not to cooperate, then we can decide to cooperate “.
So far, traders have bet that some of the suspected “market negative” potential of a Biden presidency, such as the move to raise corporate taxes, will be restrained by the Senate. remains under the control of the Republican Party. Two Senate races still exist in Georgia and won’t be decided until January, though the prediction markets so far have given Democrats a relatively low win rate to win both seats. necessary for the party to dominate the room.
“A divided government limits the Biden administration’s ability to implement large-scale fiscal stimulus plans and public investment, taxation, and care,” analysts from BlackRock Investment Institute said. health and climate related laws, ”analysts from the BlackRock Investment Institute said in a note on Saturday. “We see a growing focus on sustainability under a divided government, but through regulatory actions, rather than through taxation or spending on green infrastructure. It could also be a sign of a return to more predictable trade and foreign policy – even as the rivalry between the US and China is set to continue to soar as bipartisan stances support. more competitive. “
Analysts added that “some of the fiscal stimulus seems viable” during the bad session of Congress, although the size and scope of any upcoming packages will likely be much smaller. compared to what a unified Democratic government could have come up with.
“We are monitoring the fiscal response closely, as early exit could hinder the economic restart process that has so far surprised the opposite,” they said.
Other economists also expressed optimism that a stimulus could be passed before Inauguration Day, even after month-long discussions between Trump administration officials and lawmakers. Congress did not reach an agreement.
“We increasingly hope that the pressure from vulnerable business leaders and Republican Senators by 2022 will mean something may pass before the end of the year and at best before the end of the month, ”said Ian Shepherdson, chief economist with Pantheon Macroeconomics, in a note on Sunday.
Meanwhile, for the high-tech stocks that have driven the market higher for most of this year, President Biden’s victory with the high likelihood that the Republicans will set out “Golden Election results”. According to WedBush analyst Dan Ives.
“Investors should expect a reduction in US / China tensions and the ‘split road’ of the Cold Tech War, which is a bullish sign for Apple (AAPL) and selling. [semiconductor] Ives said in a note on Saturday. Concerns about the tougher antitrust environment for Big Tech companies could also be alleviated, he added.
Biden is also set to put out a more serious tone in combating the coronavirus pandemic, with an outbreak that has claimed the lives of more than 230,000 Americans, more than 9.8 million sick and pulled economic activity out of America down to historic lows. And while the counting of votes is underway last week, coronavirus infections hit a memorable milestone in the US: A record of more than 120,000 new cases was reported on Friday alone. Biden is expected to announce a new 12-man coronavirus task force on Monday, as one of his first major actions during his presidential transition, according to reports from Axios and CNN. .
8:28 am ET: Biden welcomes Pfizer’s vaccine progress, warning ‘the battle against COVID-19 is over still months away’
President-elect Joe Biden, in a statement Monday morning, congratulated Pfizer for their COVID-19 vaccine work, but urged Americans to remain vigilant about wearing masks and staying out of society for testing. control of virus spread.
“The battle against COVID-19 is still a few months away,” Biden said in a statement. “This news follows a previously published timeline by industry officials predicting vaccine approval by the end of November. Even with that, some Americans are vaccinated. At the end of this year, it will be many months before the widespread vaccination in this country ”.
“This is why the head of the CDC warned this fall that in the near future, masks are still a more powerful weapon against viruses than vaccines,” he added. “Today’s news does not change this urgent fact. Americans will have to rely on face masks, foresight, contact monitoring, hand washing and other measures to keep themselves safe for the coming year. Today’s news is great news, but it doesn’t change that fact.
7:16 am ET: Dow futures index is up more than 1,400 points after optimistic, Biden’s winning vaccine data
Here are the key moves on the stock market, as of 7:16 am ET:
S&P 500 futures (ES = F): 3,629.40, up 119.5 points or 3.4%
Dow Futures (YM = F): 29,737.00, up by 1,456 points or 5.15%
Nasdaq 100 futures (NQ = F): 12,144.25, an increase of 98.25 points or 0.8%
7:10 am ET Monday: Pfizer, BioNTech, says their COVID-19 vaccine candidate is 90% more effective
Shares of Pfizer and German drugmaker BioNTech both soared Monday morning after companies announced that their phase 3 clinical trials showed their COVID-19 vaccine candidate was more than 90% effective in preventing coronavirus in participants with no previous evidence of infection.
The trial’s analysis evaluated 94 confirmed COVID-19 infections among nearly 44,000 participants.
The split case between those vaccinated and those given a placebo showed the vaccine’s efficacy rate above 90%, 7 days after the second dose, the companies said in a statement. “. “This means protection is achieved 28 days after vaccination initiation, including a 2-dose schedule.”
The companies added that they planned to submit an Emergency Use Licensing request for their vaccine candidate to the U.S. Food and Drug Administration after they had a total of two months. data to achieve agency safety requirements. This is expected to take place in the third week of November.
6:01 pm ET Sunday: Stock futures open higher after Biden is named victorious in presidential election
Here are the key moves in the market, as of 6:01 p.m. ET on Sunday night:
S&P 500 futures (ES = F): 3,517.00, up 16.25 points or 0.46%
Dow Futures (YM = F): 28,334.00, up 130 points or 0.46%
Nasdaq Futures (NQ = F): 12,141.5, up 66.5 points or 0.55%
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