- S&P 500 and Dow Jones futures rose to daytime highs after drugmaker Moderna said its trial vaccine, COVID-19, was 94.5 percent effective.
- Crude oil futures rose more than 3%, while technology stocks and gold fell and treasury yields remained stable.
- Moderna said its product could be stored for a month at typical refrigerator temperatures, reaffirming the optimism that began last week with the announcement of rival pharmaceutical group Pfizer as a promising candidate for the vaccine.
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US stock futures jumped on Monday after drugmaker Moderna said its candidate for the COVID-1
The finding comes from a study of 30,000 people, which compared volunteers who received a two-dose regimen of the Modern shot with those who received a placebo. The vaccine has been shown to be 94.5% effective in preliminary analysis.
The futures of the S&P 500 and Dow Jones rose 1.4-1.8% to trade around session highs, while those of the tech Nasdaq 100, which contains many of the beneficiaries of the home-based economy created by the pandemic , gave way to initial profit and fell 0.1%
Small-cap stocks seemed set for a bigger jump at the start of regular trading later. The futures of the Russell 2000 index were last 2.6%. Many of them are highly exposed to the mainstream economy and could benefit first from the introduction of an effective vaccine.
Shares of Moderna traded as much as 9% higher in market trading, while those of healthcare rivals Pfizer and AstraZeneca fell 1-1.8%. Shares of Johnson & Johnson rose about 1.4% in pre-trading.
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Moderna’s vaccine has a key advantage over Pfizer’s shot. It can be stored for a month at typical refrigerator temperatures (36 degrees Fahrenheit to 46 degrees Fahrenheit), while the Pfizer shot should be stored at -94 degrees Fahrenheit, requiring dry ice and special containers.
“Vaccine-related headlines will dominate the news cycle from now until the end of the year. Positive news should support risk appetite (so, as an extension, USD negative),” BMO Capital Markets’ head of European Monetary Strategy said in a note. .
The dollar fell widely, especially against emerging market currencies, after the news.
Global stocks were torn apart by Pfizer’s announcement last Monday that its vaccine had succeeded in the final stages of its clinical trial and proved effective in 90% of cases. The S&P 500 reached record highs, while the Tokyo Nikkei climbed to its highest level in almost 30 years.
Extended crude oil profits. Brent crude futures last rose 3.5% to $ 44.28 a barrel, while WTI futures rose 3.9% to trade around $ 41.70 a barrel.
Meanwhile, perceived safe havens such as the US Treasury and gold have come under pressure.
Gold fell 0.9 percent to $ 1,870.35 an ounce, near daily lows, while the 10-year reference treasury’s yield remained unchanged at about 0.887 percent.
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