- U.S. stocks opened higher across the board driven by the surge in the global market.
- The Dow rose nearly 1,600 points to a record high.
- Pfizer and BioNTech SE made significant progress in the new coronavirus vaccine.
On Monday, investors paid attention to Fed officials’ speeches and economic data. At the same time, Democratic presidential candidate Joe Biden announced his victory, and the news that Pfizer claimed that its vaccine can prevent 90% of new coronavirus infections gave the market a strong boost.
U.S. stocks opened higher across the board driven by the surge in the global market. The Dow rose nearly 1,600 points to a record high.
The Dow Jones Index rose 155.986 points, to 29,883.26 points. The S&P 500 Index rose 135.78 points, to 3,645.22 points. The Nasdaq Composite Index rose 155.71 points to 12050.94 points.
In the early trading of US stocks, the sector structure split, aviation, energy, and cruise stocks rose sharply. The home economy, e-commerce generally fell, and vaccine stocks split.
U.S. airline stocks and cruise stocks rose sharply. Loyal Airlines and United Airlines (UAL) rose more than 25%, American Airlines Group (AAL) rose 22%, and Delta Airlines (DAL) and Southwest Airlines (LUV) rose more than 20%. Carnival Cruise Line and Norwegian Cruise Line both rose more than 30%.
Energy sector stocks also rose sharply. Valero Energy (VLO) rose 26%, Phillips 66 (PSX) rose 22%; British Petroleum (BP) rose 16%, and Total (TOT) rose 15%. Royal Dutch Shell (RDS) rose 14%, Chevron (CVX) and ExxonMobil Oil (XOM) rose more than 10%.
Many home economy and home office concept stocks fell. Netflix (NFLX) fell 7.8%, ZOOM (ZM) fell nearly 20%, home fitness company Peloton (PTON) fell 24%, and e-commerce Etsy ( ETSY) fell 17.43%. Roku (ROKU) fell 9%.
The U.S. e-commerce sector generally fell. Dada Group (DADA) fell 11.6%, JD.com (JD) and Vipshop (VIPS) fell 5.8%, eBay (EBAY) fell 5.6%, Pinduoduo (PDD) fell 5.3%.
Vaccine stocks diverged. BioNTech rose 17%, Novavax Pharmaceuticals rose 9%, Pfizer rose 7.3%, Moderna rose 5%, Abbott fell 3.7%, and AstraZeneca fell 2.7%.
Under the influence of multiple factors, such as the US election, non-agricultural employment data, and the ongoing epidemic, the S&P 500 index rose by 7.3% last week, the best election week performance since 1932. The Dow is up 6.9% and the Nasdaq is up 9%, both setting their best weekly performance since mid-April.
After former Vice President Biden was successfully elected as the next president of the United States, the whole world was relieved, and global stock markets were rising to welcome President Donald Trump’s defeat.
The market aroused long sentiment, and foreign leaders congratulated President-Elect Biden, one after another. Diplomats and commentators expressed gratitude, satisfaction, and even rejoicing for the much-needed restoration of normalcy that the new president will bring.
They believed such normalcy disappeared worryingly on the day President Trump took office.
Pfizer and BioNTech SE made significant progress in a new coronavirus vaccine, which rose more than 13% and 25% respectively. Aviation stocks, oil stocks, and banking stocks were also sent soaring.
Also, before Pfizer’s vaccine news, stock futures had been pointing to a higher start. With the confusion concerning last week’s US presidential election largely in the rearview mirror, investors have been focused on the optimistic impact of a Biden presidency.
The first response to President-Elect Biden’s formal projection as the winner over the weekend was a positive one.
Stocks also rallied last week, when the market expected Joe Biden would win the race. Investors are betting that a Democratic White House, combined with a Republican Senate, can contribute to more moderate policies— and lesser raises in taxation and regulation— while also having a fresh stimulus deal on the table fast.