US stocks rose early in the day of trading, setting key stock benchmarks to record highs after Germany-based BioNTech SE and Pfizer Inc. said their COVID-19 vaccine candidate had "success" in the first interim analysis of a phase 3 study achieved.
Assets classified as risky had already received a boost before it opened as former Vice President Joe Biden was projected over the weekend to defeat President Donald Trump in a heated election.
How are stock benchmarks performing?
The Dow Jones industrial average
rose 1,415 points or 5% to 29,738, beating its previous record of 29,568.57 in February. The S&P 500
jumped 122 points, or 3.5%, to 3,632 and passed its most recent all-time high of 3,588.11 in September. The Nasdaq Composite
rose 92 points, or 0.8%, to 11,987, near its all-day high at 12,074.07.
On Friday the S&P 500
Up 7.3% Weekly and the Nasdaq Composite Index
jumped 9% for the week. The Dow
rose 6.9% this week.
What is driving the market?
The markets were lively on the early Monday after Pfizer
The BNT162b2 vaccine candidate was shown to be greater than 90% effective in preventing COVID-19 in study participants with no prior evidence of SARS-CoV-2 infection.
The companies plan to submit an Emergency Approval (EUA) to the Food and Drug Administration shortly after the safety milestones currently expected in the third week of November have been met.
The report helped give a boost to a market that was already bullish about clarity on the election front.
On Saturday, Biden was found to surpass the 270 electoral college votes required to win the presidency four days after election day, reducing the prospect of a lengthy number of votes in a test race for the White House that had the potential to confuse the markets. at least in the short term. Trump has not yet conceded, however, and his campaign continued to push for legal challenges in several states.
Big gains last week, the strongest since April, were due to rising expectations that Biden would be declared the winner and that a split Congress would lead to a scenario that many investors believe would be less likely to lead to policy changes, which could be viewed as annoying. including higher taxes and tightened regulations.
Read: That means a Biden presidency for stocks, bonds and commodities
“While Senate control remains to be determined, the markets are reacting as if Republicans continue to hold that part of Congress. In this case, taxes are likely to remain at the current low level and interest rates will remain near zero for a long time, ”wrote Hussein Sayed, chief market strategist at FXTM, in a research report on Monday.
“This is the best environment for growth stocks, especially in the tech sector. Hence, they continue to outperform the broader market, ”the analyst wrote.
While Trump has threatened to fight the election results, few experts believe there are viable ways to reverse the result, and market participants seemed willing to look beyond those concerns.
"Joe Biden won the US presidential election, but there is no sign that President Trump will back down, and that suggests we are likely to be in a drawn-out affair regarding the validity of certain government results," David wrote Madden, Market Analyst at CMC Markets UK.
"Right now, dealers aren't concerned about the possibility of anything other than Joe Biden becoming US President in January," he said.
Which companies are in focus?
Pfizer and BioNTech Stocks rose at the beginning of trading. Pfizer was up 8.3%, while BioNTech was up 16.4%.
AMC Entertainment Holdings Inc. "s rundown stocks
The airline shares all rose sharply. Southwest Airlines
and Delta Airlines
were all up over 20% on Monday. Shares of Boeing Co..
increased by 14.2%.
Cruise ship stocks are likely to gain significantly. royal caribbean
Stocks rose 28% and carnival Shares
North Face parents VF Corp.
said Monday that it had acquired streetwear brand Supreme. The shares of VF Corp. increased by over 15%.
Stocks that benefited from work-from-home arrangements dived. Shares of Peloton Interactive Inc.
Which assets are in motion?
The yield on the 10 year Treasury bill
rose 11 basis points to 0.930%, one basis point off Tuesday's high of 0.94%.
The Europe-wide Stoxx 600 Europe Index
rose over 4% while London's FTSE 100
Oil futures rose against the US benchmark
Up 10.5% to $ 41.04 a barrel. Gold futures
fell 3.7% to $ 1,880.40 an ounce.
The ICE US dollar index
A measure of the currency versus a basket of six major competitors fell less than 0.1%.