As cyclical stocks in the airline, restaurant and financial sectors skyrocketed, popular work-from-home names like Zoom, Peloton and Netflix slumped.
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This story originally appeared on Business Insider
The progress of the COVID-19 vaccine announced on Monday appeared to be what the stock market needed to hit new highs. Both the S&P 500 Index and the Dow Jones Industrial Average opened on intraday records after Pfizer and BioNTech announced that their vaccine was more than 90% effective at preventing disease during their Phase 3 study was and is in preparation. for an emergency response.
The drug manufacturers said that no serious safety concerns were identified during the study, which included approximately 44,000 patients.
Pfizer and BioNTech are now increasing production of the vaccine. They said they expect to produce more than 50 million cans by the end of the year and more than 1 billion cans by 2021.
Here's where the NY Stock Exchange indexes placed just after 9:30 a.m. ET, which are open on Monday:
News of the advancement of vaccines spread across various sections of the stock market. Pfizer rose 8% as investors expect the company to benefit from a quick launch of the vaccine. The cyclical reopening of trading also boosted Monday morning gains. Airlines and cruise ship shares rose as investors likely anticipate pent-up demand for travel once a vaccine becomes widespread. Movie theater chain AMC Entertainment Holdings led a broad rally in movie stocks, up about 48% on Monday morning. Berkshire Hathaway gained 7% in share purchases, record buybacks and news about the Pfizer vaccine. On the flip side, work-from-home company stocks suffered on the news as people are more likely to spend less time at home and return to offices once the COVID-19 pandemic is in the rearview mirror. Zoom, Peloton, DocuSign and Netflix went under on Monday. Biogen fell 32% after an advisory committee to the Food and Drug Administration announced that Alzheimer's therapy would not be approved early next year. Oil prices rose. West Texas Intermediate crude oil rose 11% to $ 41.33 a barrel. Brent crude, the international benchmark for oil, rose 10% to $ 43.48 a barrel on intraday highs. Gold slipped on Monday, falling to 4.2 at $ 1,868.97 an ounce.