Potential COVID-19 vaccine boost U.S stocks

Potential COVID-19 vaccine boost U.S stocks

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.”

Stocks bulls increased their stock holdings as the Federal Reserve’s Beige Book survey showed that U.S. businesses saw an uptick in activity into the beginning of July, as states eased restrictions to contain the novel COVID-19 pandemic.

About The Author

Kingsley Alaribe

Kingsley Alaribe is a Digital Marketer with 1stNews, and writes the weekly column, Strangers and Lovers. He is also a Data Scientist. Email: kingsley.alaribe@1stnews.com

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