- The positive vaccine news has once again boosted the market.
- US stocks opened collectively higher, and the Dow rose by more than 350 points.
- Moderna announced its new coronavirus vaccine effectiveness, in the third phase of the trial, was 94.5%.
In US stock market news from the financial world on Monday, investors are concerned about the impact of the economic reopening and the progress of the U.S. election. At the same time, positive vaccine news has once again boosted the market. US stocks opened collectively higher.
The Dow Jones Index rose 358.69 points, or 1.22%, to 29,838.50 points. The S&P 500 Index rose 29.00 points, or 0.81%, to 3,614.15 points. The Nasdaq Composite Index rose 13.27 points, or 0.11%, to 11,842.56 points.
European stocks rose 1.6% after the media said that President Trump had recognized President-Elect Biden’s victory, and that China and 14 Asia-Pacific countries signed the world’s largest regional free trade agreement. The Shanghai Composite Index rose 1.1 percent, and the Nikkei 225 index rose 2.05%.
Oil prices surged more than 3%, and WTI crude oil futures rose 3.7% to $41.62 per barrel. Brent crude oil futures rose 3.4% to $44.25 per barrel. The price of gold fell from a new one-week high, and the dollar index rose 0.03% to 92.78. US COMEX gold futures fell 0.6% to $1,875.05 per ounce.
Moderna’s News Boosts Market
The American pharmaceutical company Moderna stated that in a preliminary analysis of a large late-stage clinical trial, the effectiveness of its COVID-19 vaccine reached 94.5%. It again shows that scientists and pharmaceutical companies are speeding up the search for effective new ones that may help control the worsening pandemic.
A similar vaccine, developed by Pfizer and BioNTech SE a week ago, showed effectiveness of more than 90% in an interim analysis. Both vaccines rely on mRNA technology, which has never been used to produce an approved vaccine. Soon, this breakthrough will save millions of people around the world from disease.
Moderna said in a statement on Monday that preliminary analysis of data from more than 30,000 volunteers showed that Moderna’s vaccine actually prevented all symptomatic COVID-19 cases caused by the new coronavirus. The vaccine also seems to be effective in preventing the most serious COVID-19 infection.
According to Moderna’s statement, there were no severe illnesses among the vaccinated volunteers, while 11 of the volunteers who received placebo injections had severe illnesses.
Fed Releases $3 Trillion in Liquidity
After restarting quantitative easing, the Fed’s balance sheet has expanded by $3 trillion so far this year and has injected $120 billion in liquidity every month. The Fed is also buying corporate bonds and junk bond ETFs, which is the last line of defense against market crashes.
The financial blog Zerohedge stated that the U.S. capital market is closely related to its economy. The value of financial assets in the U.S. economy already accounts for 620% of GDP. The collapse of the financial market will destroy the highly financialized U.S. economy.
The Federal Reserve will not allow this to happen. Therefore, as long as the market still needs financial support, the Fed will continue to release liquidity.