S&P 500 bounces up amid hopes of a COVID-19 vaccine

The main Wall Street indexes have bounced up after a choppy session, with the S&P 500 approaching daily highs as hopes of a COVID-19 vaccine have incr  |  23/11/2020 21:17
  • The SP 500 closes 0.56% up buoyed by hopes of a COVID-19 vaccine.
  • News about Trump's plans to increase pressure on China has capped the positive mood.

The main Wall Street indexes have bounced up after a choppy session, with the S&P 500 approaching daily highs as hopes of a COVID-19 vaccine have increased confidence on the energy and industrial sectors, offsetting declines on the tech sector.

News reports about another successful trial in a COVID-19 vaccine have brightened market sentiment on Monday, boosting hopes about an economic recovery in 2021 and easing concerns about the surging coronavirus infections in the US and in Europe.

The pharmaceutical giant AstraZeneca announced earlier today that the coronavirus vaccine developed together with Oxford University has shown a 90% efficiency in the tests. The third firm reporting successful trials for a COVID-19 vaccine has increased hopes of a cure available early next year, which would contribute to a strong global economic recovery.

Investors’ optimism, however, has been dented by news that Trump’s administration is weighing to increase pressure against China. Senior officials have suggested a plan to create an informal alliance of Western countries to retaliate when Beijing uses its trade power to coerce countries, in response to China’s pressure after Australia called for an independent investigation on the origin of the coronavirus pandemic.

On the macroeconomic front, the Preliminary US Markit PMI has surprised the market, with both the manufacturing and services sectors’ activity expanding beyond expectations in November, which has contributed to buoy investors’ sentiment.

At the Wall Street close, The Dow Jones Industrial Average rallied 348.54 points, that is 1,19% above the opening level to 29,591.27, the S&P500 SPX advanced 20.05 points, or 0.56%, to 3.577,59, while the Nasdaq Composite added 25,66 points, or 0,22 % to 11.880,63.

 

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