[ad_1]
People walk in front of the New York Stock Exchange.
Spencer Platt | Getty Images
Stock futures rose slightly in trading Monday night following a record rally sparked by promising news about a coronavirus vaccine.
Futures contracts on the Dow Jones Industrial Average gained 30 points. S&P 500 futures were up 0.2% and Nasdaq 100 futures were up 0.3%.
The overnight action came after a strong rally on Wall Street that saw the Dow and S&P 500 hit new intraday highs. The 30-stock average rose more than 800 points, posting its biggest single-day gain since June 5. It jumped over 1,600 points at one point before weakness in the tech sector put pressure on the market in general. The S&P 500 gained 1.2%.
US pharmaceutical giant Pfizer and German biotech company BioNTech announced on Monday that their coronavirus vaccine was more than 90% effective in preventing Covid-19. The news has skyrocketed travel inventories, because “the recovery of these businesses depends on a successful economic reopening. American Airlines, Delta and United all jumped more than 15%, while Carnival, Norwegian and Royal Caribbean are each up more than 25%.
“The good results from the Pfizer vaccine have been better than most expectations and means we may reopen sooner than expected,” said Ryan Detrick, chief market strategist at LPL Financial, “coupled with an economy that continues to surprise on the rise and the stock market is now assessing the prospects for a much better economy in 21 ”.
As cyclical stocks led the market advance on Monday, the high tech Nasdaq Composite fell 1.5% as investors ditched some of the popular plays like Zoom Video and Netflix. The Nasdaq ended Monday’s session near its session low.
“The ‘stay at home’ trade, which has driven the market up for most of this year, is in danger of falling out of favor,” said Lindsey Bell, chief investment strategist at Ally Invest. “There is still a good long-term argument for the technology, but it may not overtake the rest of the market like it has since March.”
Pfizer’s big vaccine news came as the United States surpassed 10 million Covid-19 cases, a grim milestone barely 10 days after hitting the 9 million mark amid a record rise in daily infections. Many on Wall Street believe that a viable vaccine would be crucial for the economy on the path to full recovery.
To subscribe to CNBC PRO for exclusive news and analysis, and live business day programming from around the world.
[ad_2]
Source link