On Saturday, Biden announced during his victory speech his plans to assemble a coronavirus task force that will aid in helping curb the spread of the virus.
U.S. markets on Monday were poised to see one of their strongest opens in months after progress on a Covid-19 vaccine and Democrat Joe Biden's electoral victory sent stock futures soaring and boosted companies in the hardest-hit sectors of the economy.
Pfizer and BioNTech-In an interim analysis of a phase 3 study, announced Monday their Covid-19 vaccine candidate was found to be more than 90% effective in participants who were not previously infected, hailing the development as “a great day for science and humanity.”
“I think we can see light at the end of the tunnel,” Pfizer Chairman and CEO Dr. Albert Bourla said.
U.S. stock futures skyrocketed as investors cheered the news. Future on the Dow Jones Industrial Average surged 1,537 points, or 5.4%, implying an opening gain of more than 1,500 points. The Dow’s previous intraday record was 29,568.57, about 1,245 points from Friday’s close.
S&P 500 futures jumped 4%. Russell 2000 futures rallied 7%, triggering upside limits set by the CME Group to prevent highly volatile trading moves.
Tech-heavy Nasdaq 100 futures fell 0.5% as traders left crowded growth and stay-at-home stocks in favor of cyclical companies that could outperform if the Pfizer vaccine is approved for widespread use.
The FTSE 100 (UKX) in London climbed 4.7%, while Germany's DAX (DAX) jumped 5.4% and France's CAC 40 (CAC40) vaulted nearly 7% higher. The price of Brent crude oil, the global benchmark, shot up nearly 8% to $42.45 a barrel, inching closer to its recent peak of $45.86 a barrel on August 25.
Japan's Nikkei 225 gained 2.1% to close at a fresh 29-year high, after ending Friday at levels last hit in 1991.
China's Shanghai Composite Index closed 1.9% higher and Hong Kong's Hang Seng Index rose 1.2%. The Chinese yuan rallied to about 6.56 per U.S. dollar in the offshore market, trading at its strongest levels in more than two years.
(Images from the internet)