By Global markets soared on Monday after news of the successful results of the third phase of the joint Pfizer and BioNTech vaccine development. Futures on the SP 500 and Dow Jones soared to new historic highs, but could not sustain them. The Nasdaq100 had an even heavier correction, as the initial spike in stocks included in this index very quickly turned into a sale.
The initial move was a complete reversal of the trends of the previous months the growth leaders included stocks of cinema chains, cruise companies, airlines, and theme parks, as well as oil producers. All grew on speculation around the possibility of quickly returning to normalish life, as Pfizer can swiftly put the vaccine to mass production.
The same idea of a rapid recovery has led to an abundance of profittaking in recent hippie stocks such as Zoom, Peloton and many others. Stayathome shares decline caused a 1.5 slip in the Nasdaq100 on Monday and is further developing its decline at the beginning of trading on Tuesday.
The caution of senior politicians also fuelled caution on the markets. Johnson was very restrained in commenting on the progress of the vaccine. As with Moderna, development can be difficult.
Even more disturbing comments came from the US. Presidentelect Biden who noted that there is still a dark winter ahead, bringing back to the markets fear of a new lockdown amid records for new daily cases and multimonth highs for daily deaths.
The Fed Chairman noted yesterday the risks of…
