Stocks are surging Wednesday on positive COVID-19 vaccine news from Moderna which said its coronavirus vaccine produced a “robust” immune response, or neutralizing antibodies, in all 45 patients in its early stage human trial, according to newly released data published Tuesday evening in the peer-reviewed New England Journal of Medicine.
The Dow Jones Industrial Average traded 326 points higher, or 1.2%. The S&P 500 gained 1.1% and the Nasdaq Composite advanced 1%. Wednesday’s gain put the S&P 500 just below breakeven for 2020.
Shares of Moderna surged 10%. Stocks directly tied to an economic reopening jumped following the vaccine news.
“A COVID-19 cure/vaccine is a binary event for markets, and there are many ‘shots on goal’ on the healthcare side and only one needs to be successful,” said Tom Lee, founder and head of research at Fundstrat Global Advisors, in a note. “There are piles of cash seen in hedge funds, macro funds, mutual funds and individual investors. If the cadence of healthcare data continues to support some sort of cure, the focus on ‘re-closings’ ultimately fades.”
Apple contributed to the gains Wednesday, rising 1.6% after a European Union court annulled a 2016 European Commission order for the tech giant to pay $15 billion in taxes.
MacDailyNews Take: Again, until we get a COVID-19 vaccine, which will hopefully come more quickly than previously thought possible as Operation Warp Speed looks to accelerate development by funding steps to proceed simultaneously versus the usual sequential process, try to be as safe as you can be – wash your hands frequently, keep your hands away from your face, wear a mask in public, practice social distancing, etc.
The CDC guidelines for how to protect yourself and others — especially older adults and people who have severe underlying medical conditions like heart or lung disease or diabetes and are at higher risk for developing serious complications from COVID-19 — are here.