Pharmaceutical giant Pfizer (PFE) brought welcoming news to global markets, announcing that their COVID-19 vaccine trials showed a 90% success rate.
Since early March this year, many pharmaceutical companies raced to find an effective vaccine against COVID-19. This renewed hope from Pfizer, together with German biotechnology firm BioNTech saw markets rally, despite not yet receiving FDA approval. Following the announcement, Pfizer soared 7.6%, leaving traders to wonder if other pharmaceutical companies will follow suit with other Coronavirus vaccines.
US Market Reaction
However, some companies who gained a mid-year boost during national lockdowns dropped during Monday’s trading, such as:
While these popular stocks dropped, entertainment shares, such as Cinemark (CNK) jumped 45% on hopes of reopening theaters.
Futures Rise and Fall
Some indices experienced mid afternoon losses on Monday following their morning gains, the FTSE 100 (UK100) ended the day up 3.06%, Fibi (Italy40) was up 3.24% & Spain's IBEX 35 (Spain 35) closed 7.0% higher.
Following recent losses, Oil (CL) opened at $37.3, climbing to $41.3 before tapering off and closing at 39.8, locking in a 6.7% climb during Monday’s trading.
While yesterday’s events saw markets rise and fall, it is unclear how Pfizer's announcement will affect future markets, especially in Europe which is experiencing a wave of renewed restrictions.