Wall St. rises in choppy session on cyclical bet, vaccine hope



by   |  VIEW 1080

Wall St. rises in choppy session on cyclical bet, vaccine hope

On Monday, all three key indices of Wall St. had winded down a choppy session modestly higher as hopes of a pandemic vaccine as early as by early-December had propped up demand-sensitive sectors such as energy and industrials, while a buoyant IHS Markit Composite PMI data had added to further bullish wing, however, a setback on mega-cap tech shares largely due to a renewed pandemic restriction measures had kept a lid on the gains of S&P 500 and Nasdaq.

In point of fact, earlier in the European trading hour, AstraZeneca said in a statement that its pandemic vaccine which it had been developing in collaboration with the Oxford University, had shown a 62 per cent efficacy in a late-stage human trial, however, late on European trading hours, AstraZeneca had issued another statement saying that its final trial result on an adjusted basis had shown a 90 per cent efficacy to prevent the pandemic infections, leading to an upsurge in investors’ morale, while US FDA’s authorization for an emergency use of Pfizer’s pandemic vaccine had ramped up optimisms that a potential pandemic vaccine might be available for both Europe and the United States as early as by early-December, eventually leading to a scintillating surge in economically sensitive shares.

Aside from that, earlier in the US trading hours, IHS Markit’s survey data for US manufacturing and service sectors PMI (Purchasing Managers’ Index) had unveiled that the US business activity had accelerated by its steepest pace in more than five years in November which in effect had amped up market participants’ sentiments further.

Wall St. rises amid a flurry of upbeat economic data, vaccine hopes

Citing statistics, on Monday’s Wall St.

closing bell, the trade-sensitive Dow gained 1 per cent to 29,554.96, mostly boosted by an upsurge in energy stocks following a 2 per cent rise in crude oil futures’ prices, and S&P rose 0.44 per cent to 3,573.21, while the tech-heavy Nasdaq edged 0.11 per cent higher to wrap up the day at 11,867.92.

Meanwhile, addressing to investors’ optimism over a likely earlier-than-anticipated launch of a potential pandemic vaccine, a managing partner at Kace Capital Advisors in Jupiter, Florida, Ken Polcari said on the day’s Wall St.

round off, “It’s Monday vaccine trade day. As they move out of those growth names, it’s still this continued move into larger cyclical, value names, which is why you see the Dow performing so well and the Nasdaq under some pressure”.