- “Today is a great day for science & humanity.” – Pfizer CEO
- DOW seeing major success after Monday’s news of possible COVID-19 vaccine
- Vaccine predicted to be a cure for Covid-19 and the market
After a whirlwind of 2020 election reports, a new and refreshing headline has made its way to the forefront of the media: a possible vaccination for Coronavirus is in the works. The vaccine, currently in Phase 3 of clinical trials, has proven a 90% efficacy in blocking the Coronavirus from previously uninfected participants.
“Today is a great day for science and humanity,” said Pfizer CEO Dr. Albert Bourla. “The first set of results from our Phase 3 COVID-19 vaccine trial provides the initial evidence of our vaccine’s ability to prevent COVID-19.”
It didn’t take long for this news to hit the stock market; as a result, stocks soared and brought the DOW up 1,300 points (4.8%) in premarketing trading Monday morning. The two corporations responsible for this hopeful news saw major success with BioNTech SE- ADR (BNTX) up 23.4% and Pfizer Inc. (PFE) up 11.5%.
Market strategists predict this success is due to investors pivoting their attention from post-election news and back to the pandemic still at hand. Goldman Sachs strategists Dominic Wilson and Vicki Chang believe that this change in pace will be necessary to propel a rebound in early 2021: “[The] likely delivery of vaccine news in the next few weeks may be the next key event risk… focus is likely to begin shifting back towards the vaccine and broader growth outlook.”
Strategists at UBS have seconded this, saying that the rising death toll of Covid-19 in the US compels a “quick approval of an effective vaccine” to save not only people, but businesses, suffering from the virus. “Unless a vaccine comes within a few weeks, slower [economic] data momentum is a real risk to the markets,” the bank told clients.
Currently, it’s a race to vaccinate with Pfizer leading the pack, but other contenders are not far behind. Scientists from Oxford University reported a vaccine in the works with AstraZeneca, which is looking to report trial results sometime during the holidays.
Check out our DSJCPA COVID-19 Information Center to stay current and call our offices at 516-541-6549 to speak with a member of our Coronavirus Response Team (CRT).
Associate, Creative Solutions
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