U.S. stocks closed higher yesterday, following impressive data for a potential COVID-19 vaccine; and a strong quarterly report by America’s leading investment bank, Goldman Sachs.
Recall that 1stNews reported on Moderna Inc rallying after a small-scale study showed; one that its experimental COVID-19 vaccine produced high levels of virus-killing antibodies.
“The Moderna news woke everybody again that this is not going to last forever; and there is light at the end of the tunnel. That is why you are seeing such a strong move today into those economically sensitive stocks,” said Tim Ghriskey, Chief Investment Strategist Inverness Counsel in New York in a note Reuters.
America’s elite bank Goldman Sachs surged after it reported that its trading revenue doubled in the second quarter; driven by high volatility in stock and bond markets since March.
In addition, Stephen Innes, Chief Global Market Strategist at AxiCorp explained geopolitical macros; affecting the U.S Stock market. He said:
“The S&P500 closed on an upbeat note as US equities continued to defy all gravity; as investor optimism revels amid the progress in developing a vaccine which continues to reign supreme.
“Adding to the positive vibe, President Trump defused the US-China tensions and walked back an unwanted element of geopolitical risk that quite frankly no one wanted or needed at this point with COVID-19 ravaging large parts of the US consumer complex.
“The President’s backpedaling is coming at a good time and keeping the omnipresent bears and prophets of doom at bay for now.”