Pfizer: Covid-19 Vaccine, More Than 90% Effective 0:56
(CNN Business) ––
US shares in the Dow Jones rose for the most part this Monday after Pfizer announced that its vaccine against covid-19 is 90% effective, according to the first results.
Also after Joe Biden was screened as the winner of the presidential election at the weekend.
LEE: Pfizer says that the first analyzes show that its vaccine against covid-19 is 90% effective
The Dow soared as high as 1,610 points in the morning before some of its gains declined.
The index rose 1,255 points, or 4.4%, in the early afternoon.
A great day for the Dow Jones
At this rate, the Dow is on track for one of its best days of the year and one of the biggest daily point gains in history.
The index is also on track to break the all-time closing high it reached in February, and has already set a new intraday record.
The broader S&P 500 was up 2.6% in the early afternoon.
He's also on his way to breaking a record, as well as having his best day since May.
Given the momentum in the stock market, JPMorgan expects the S&P to exceed the previous target of 3,600 points by year-end.
Additionally, it should rise to 4,000 points in early 2021. The index could even move to around 4,500 points by the end of next year.
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LOOK: How Biden plans to change the US response to the pandemic
"The strong results from the Pfizer vaccine were better than expected and means that we could be opening again sooner than anticipated," Ryan Detrick, chief market strategist at LPL Financial, said in emailed comments.
Coupled with an economy that will continue to recover, this could help make 2021 much better.
The Nasdaq Composite lagged behind the other two indices.
It was even red briefly before recovering and going flat in the early afternoon.
The tech index is missing the rally, as many tech stocks that profited during lockdowns went into the red.
The Nasdaq is still below its September record, but it is not far off.
Pfizer vaccine news benefits the Dow
Although it is a premature development, the announcement of the efficacy of the Pfizer vaccine - much better than expected - is just what Wall Street has been waiting for.
The coronavirus pandemic has sparked historic economic turmoil around the world.
To which is added the increase in cases to new records every day.
That threatens to tip the balance and cause the American economy to head in the wrong direction once again.
The vaccine will not be widely administered anytime soon.
However, Pfizer reported that it plans to apply for emergency use authorization from the US Food and Drug Administration (FDA) shortly after the volunteers have been monitored for two months after their release. second dose of the vaccine.
LEE: The US exceeded 10 million cases of covid-19 and infections are increasing in 43 states.
But there is some good news with a vaccine
Pfizer chief executive Albert Bourla said Monday that the company expects to have 1.3 billion doses of the vaccine globally next year.
That's in addition to the 50 million doses this year.
Two different production lines, one in the United States and one in Europe, will manufacture the vaccine.
Pfizer shares rose 14% at the opening bell, but the figure fell a few hours later.
The shares rose 9% in the early afternoon.
Pharmaceuticals and other companies register a rise
The news about the vaccine was good for pharmaceutical stocks.
Among them, the components of Dow Merck and Johnson & Johnson, which were on the rise before the bell.
But the positive sentiment also helped industries hit by the pandemic.
Precisely, the shares of cruise lines, including Norwegian and Carnival, and airlines also skyrocketed.
Oil, which had slumped as the economy worsened, had a better Monday morning.
US oil prices rose 8.5%.
At the other end of the spectrum, stocks that benefited from the work-at-home culture since spring, such as Zoom, Amazon and Netflix, fell.
The rise on Monday caused interruptions in stock brokers due to the high volume of operations.
TD Ameritrade and Fidelity mentioned the disruptions on Twitter with messages that linked their technology problems to high volumes.
Charles Schwab also acknowledged the interruption.
The bet on Biden
Biden announces the creation of a council against covid-19 10:18
Even before the news about the Pfizer vaccine, stock futures were pointing to a higher open.
With the uncertainty surrounding last week's US presidential election practically in the past, investors have focused on the positive effects of a Biden presidency.
The first reaction to Biden's official projection as the winner over the weekend was positive.
The market also rallied last week as the market predicted that Joe Biden would win the contest.
Investors hope that a Democratic White House alongside a Republican Senate will lead to a more moderate policy.
As well as lower increases in taxes and regulation.
All this, while quickly waiting for a new stimulus agreement on the table.
President Donald Trump continues his legal fight and unsubstantiated claims of voter fraud.
And the fate of the Senate remains in the air.
But, Wall Street is pleased that a great deal of uncertainty has disappeared.
CNN Health's Nadia Kounang contributed to this report.
Joe Biden Pfizer Coronavirus Vaccine