Dow futures has risen by 1,500 points after Pfizer, BioNTech announced Coronavirus vaccine candidate that has 90% effectiveness rate.
U.S. stock-index futures were soaring Monday after Germany-based BioNTech SE and Pfizer Inc. said their COVID-19 vaccine candidate achieved “success” in the first interim analysis from a Phase 3 study, according Market Watch.
Stock futures had already been sharply higher 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?
Futures for the Dow Jones Industrial Average YMZ20, 5.27% YM00, 5.27% were up 1,521, or 5.4%, at 29,720, those for the S&P 500 index ESZ20, 3.94% ES00, 3.94% up 130.80 points, or 3.7%, at 3,632, while Nasdaq-100 futures NQZ20, 0.00% NQ00, -0.01% advanced 102.25 points to reach 12,177, a gain of 0.8%.
On Friday, The S&P 500 SPX, -0.02% posted a weekly gain of 7.3% and the Nasdaq Composite Index COMP, +0.03% jumped 9%, respectively, for the week. The Dow COMP, +0.03% rose 6.9% this week.
What’s driving the market?
Markets were ebullient early Monday after Pfizer PFE, +0.02% and BioNTech BNTX, said their BNT162b2 vaccine candidate was found to be more than 90% effective in preventing COVID-19 in trial participants without previous evidence of SARS-CoV-2 infection.
The companies said they are planning to submit for Emergency Use Authorization (EUA) to the Food and Drug Administration soon after the safety milestones are met, which is currently expected in the third week of November.
The report helped to deliver a fresh fillip to a market that had already been upbeat on clarity on the election front.
On Saturday, Biden was seen achieving the required 270 Electoral College votes to secure the presidency from Trump, four days after Election Day, reducing the prospect of a drawn-out vote count in a testy race for the White House that had the potential to roil markets, at least in the near term. Trump has yet to concede, however, and his campaign continued to press legal challenges in several states.
Big gains last week, the strongest since April, came on rising expectations that Biden would be declared the winner and a divided Congress would result in a scenario that many investors view as less likely to result in changes to policy that might be seen as disruptive, including higher taxes and tightened regulation.
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“While the control of the U.S. Senate is still to be determined, markets are reacting as if Republicans will continue to hold this part of Congress. If this is true, taxes are likely to remain at current low levels and interest rates will stay near zero for a long time,” wrote Hussein Sayed, chief market strategist at FXTM in a Monday research note.
“That is the best environment for growth stocks, particularly the tech sector. Hence, they are continuing to outperform the broader market,” the FXTM analyst wrote.
Credit: Market Watch