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Markets Soar On Vaccine News

New Money Traders | November 10, 2020

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Pfizer announced on November 9, 2020 that their vaccine has passed a stage 3 clinical trial and is 90% effective. One week later Moderna announced its own vaccine is 94% effective. This news causes the markets to skyrocket, having one of the best single trading days of all time. There was still great uncertainty for the Market as well as the world going into 2021. Many investors see this news as real hope that the World can return to normalcy very soon. 

The Market boom was across all sectors. Especially in the pharmaceutical and travel and leisure industries. The cruise industry was hit extremely hard by Covid-19. Investors and cruise executives are hopeful an effective vaccine will get people back on the seas. 

The availability and distribution of the Pfizer vaccine is still a bit of a mystery. While the US Government pre-purchased 100 million doses it is unclear who will be among the first 50 million to get the two dose vaccine or what distribution method will be used. The vaccine is 2 injections spaced 21 days apart. Based on available data from President Trump’s initiative “Operation Warp Speed” the military could be used to expedite the vaccine distribution, however what that would look like exactly is still unknown. 

However, investors and the markets are not worried about distribution at the moment. The good news shot the market to new highs. However, if we are to stay at new highs we and the world at large will need to get a handle on the virus. Cases are on the rise across Europe as well as in the USA. A vaccine will help curb the spread but vaccines are not cures. Keep an eye on the pharmaceutical sector as other firms, Moderna and AstraZeneca to name a couple, have vaccines in the works too.

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