U.S. markets have risen sharply after reports that Pfizer’s Covid-19 vaccine achieves 90% efficiency and minimal side effects. The potential vaccine promises to return to normal life.
The Dow Jones index rose 835 points, or 2.95%. The S&P 500 index rose 1.15% and the Nasdaq Composite fell 1.5%.
Pfizer and its partner Biontech will seek to approve the vaccine by the end of November. The company said it could produce and distribute 1.3 billion doses by the end of next year.
However, newly elected President Joe Biden has warned that the United States is facing a “dark winter,” with infections in the United States and abroad rising sharply and regulators still unapproved.
Shares in travel and leisure also rose – AMC Entertainment by 50%, Carnival Corporation by 39% and Six Flags by 18%. Shares of airlines also rose sharply – JetBlue Airways Corp by 21% and Spirit Airlines Inc by 21%.
“The winners who stayed at home became the losers.” For example Zoom Video Communications Inc. fell 17% and Peloton fell 20% – a few days after announcing strong demand for its motorcycles.
Shares of Beyond Meat fell temporarily after McDonald’s said it was developing a patented plant product. But Beyond Meat later said it was involved in the creation of McPlant and its shares grew by almost 9%.
Biogen fell 30% after the US Food and Drug Administration voted against the experimental treatment of Alzheimer’s disease.
Shares of technology companies sat out the rally and fell – from Apple to Netflix.
Monday was also significant, as it was the first business day after Joe Biden was elected 46th President of the United States.
Gold “melted” in vaccine reports and fell by 5% at one point. Oil jumped nearly 10% in hopes of the economy returning to normal, as governments are expected to release people again after vaccination.