Wall St at record levels over vaccine hopes
The bull is back. Shares on the New York Stock Exchange (NYSE) and the London Stock Exchange (LSE) soared even higher today, as global stock markets continued to rebound over reports that a new Covid-19 vaccine was in reach.
The Dow Jones index appears to be on track to soon hit 30,000 points. At 29,554.31 points earlier in the day, the Dow had already beaten the record it set in February before the coronavirus became a pandemic.
And in the UK the stock market also continued its recovery. The FTSE grew by 1.33 percent today, up to 6,381 points on Wednesday afternoon. It was the highest level for the London Stock Exchange since June 23.
Technology shares seemed to be the leaders in the continued growth, with Amazon up by 2.1 percent at one point and Microsoft up by 2.2 percent. Apple was up 1.7 percent.
Airlines, hospitality and transportation companies were also doing well.
There had been some fears that a Joe Biden victory in the US elections would have a dampening effect on the stock market. But the market didn’t have much chance to react to Joe Biden claiming victory on Saturday — either negatively or positively — before Pfizer announced that it had created a powerful vaccine in its fight against Covid-19.
It was this announcement that saw the stock market surge, according to Goldman’s chief strategist David Kostin.
“A vaccine is a more important development for the economy and markets than the prospective policies of a Biden presidency. The much-awaited results from Pfizer (PFE) that its COVID-19 vaccine has an efficacy rate greater than 90% is a positive event that will allow society to gradually normalize during 2021,” Kostin said.
Strategists at JP Morgan agreed.
“The equity market is facing one of the best backdrops for sustained gains in years. After a prolonged period of elevated risks (global trade war, COVID-19 pandemic, U.S. election uncertainty, etc.), the outlook is significantly clearing up, especially with news of a highly effective COVID-19 vaccine,” JPMorgan strategists said.
Meanwhile, both the tech-rich Nasdaq and the S&P 500 continued to grow.
Wall Street was open even as the country celebrated its Veterans Day holiday.