Wall Street stock futures surged on Monday after Pfizer said its vaccine was 90% effective in protecting everyone against Covid-19.
US-based pharmaceutical giant Pfizer and German biotech company BioNTech made the announcement Monday morning, citing data from their late-stage vaccine trial.
Dow Jones futures edged up 1,300 points, continuing to rise after gaining post-election as former Vice President Joe Biden emerged Saturday as the winner of the presidential race, as predicted NBC News Decides Desk.
Futures on the S&P 500 were up 3.6% earlier on Monday, and Nasdaq futures were up more than 2%. Market share in the hospitality and tourism sectors skyrocketed following Pfizer̵7;s announcement, with the hope that passenger and visitor demand will return. Casino operators MGM Resorts and Delta Air Lines both rose 18 percent and travel agencies Royal Caribbean up 25 percent.
“This is a game changer,” Albert Bourla, president and chief executive officer of Pfizer, told CNBC in an interview on Monday morning. “Today is a wonderful day for science and humanity,” he wrote in an official statement.
With Election Day dragging on five days to no avail, Americans – and the markets – have been eagerly waiting to see whether President Donald Trump or Biden will win. Biden became president-elect on Saturday after gaining a pivotal position in the state of Pennsylvania. NBC News called the Pennsylvania race for Biden at 11:24 a.m. ET, bringing Biden’s Electoral College total to 273 and allowing the network to call elections for him.
Trump, for his part, refused to give in, vowing Saturday would spur with a legal battle, pushing unfounded claims of voter fraud over news that President-elect Joe Biden won the election.
Investors have begun repositioning their portfolios to reflect the new potential reality of a divided, “green wave” government that Democrats would otherwise control. two houses of Congress.
With legislative powers likely to be more balanced, traders bet that restrictive measures such as stricter regulation and higher taxes will hardly be passed.
On Monday morning, traders who had staked in high-growth technology stocks began to give up their holdings as the home-stay sector became less favorable.
The tech sector has benefited greatly through coronavirus lockdowns, with stocks like Amazon up nearly 100% since the beginning of the pandemic and Netflix’s market cap rising by around $ 100 billion.
The market rebounded last week, flourishing on Friday thanks to a better-than-expected job report showing an increase of 638,000 positions, well above the 530,000 level economists had predicted. However, the job snapshot is a monthly reminder that the labor market is far from recovering all 22 million jobs lost since the coronavirus epidemic hit, and indicates measures Support remains as important as fiscal stimulus.