TOPLINE
The market opened higher on Monday, with stocks extending their record run from last week thanks to rallying tech stocks and positive news on potential coronavirus treatments.
Stocks continued to build on last week’s record highs.
KEY FACTS
The Dow Jones Industrial Average was up 0.6%, over 150 points, at Monday’s open, while the S&P 500 rose 0.7% and the tech-heavy Nasdaq Composite gained 1.2%.
The Trump administration is considering fast tracking a vaccine from AstraZeneca and Oxford for approval and use before the November election, the Financial Times reported.
The market rose as the number of new coronavirus cases in the United States continues to decline: On Sunday, the number of new daily infections fell to less than 37,000, according to data from Johns Hopkins University.
The Food and Drug Administration on Sunday also issued an emergency use authorization of convalescent plasma for hospitalized coronavirus patients, a treatment which Trump has said cuts the mortality rate by 35%.
Adding to bullish sentiment was continued strength in Big Tech stocks, which helped push the market to record highs last week: Shares of Apple and Amazon each rose by more than 2%.
Meanwhile, shares of companies that would benefit from a reopening of the economy—such as casinos and airlines—moved higher amid optimism for a coronavirus treatment.
Crucial quote
“While the early use authorization for plasma is clearly a positive, from a market standpoint a vaccine remains a true ‘silver bullet’ that could super charge a rally,” says Tom Essaye, editor of the Sevens Report. “So, while positive, the plasma news is not a bullish game-changer,” although it does add to the fear of missing out in the market rally, he adds.
Key background
The market reached a milestone last week, with the S&P 500 surpassing its previous record high (set back in February) for the first time last Tuesday. The index has now fully recovered its losses from the market sell off caused by the coronavirus pandemic, officially ending the 2020 bear market. On Friday, the S&P wrapped up its fourth straight positive week and closed at a fresh record high.
Further reading
S&P 500 Hits Another Record Closing High After Strong Economic Data (Forbes)
Turkey Discovers Large Natural Gas Reserve In Black Sea. Here’s Why That Matters (Forbes)
Stocks Finish Higher As Tech Rally Offsets Disappointing Unemployment Data (Forbes)
These 10 Stocks Are All Up More Than 140% Since The Coronavirus Sell-Off (Forbes)
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