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Investing.com — Markets soared in the U.S. as a potential vaccine promises a post-Covid life. Tech missed the boat.
Pfizer (NYSE:PFE) said its Covid-19 vaccine is 90% effective at preventing infection, and investors threw an airline-cruise-leisure party in response.
The Dow Jones Industrial Average rose 835 points, or 2.95%, while the S&P 500 was up 1.15% and the Nasdaq Composite fell 1.5%.
Pfizer and partner Biontech Se (NASDAQ:BNTX) will seek regulatory approval for the vaccine by the end of November. The company said it could manufacture and distribute 1.3 billion doses by the end of next year.
President-elect Joe Biden nonetheless warned that the U.S. is facing a “dark winter” with infections soaring in the U.S. and abroad, and the vaccine not yet approved by regulators.
Travel and leisure stocks rallied, with AMC Entertainment (NYSE:AMC) soaring 50%, Carnival (NYSE:CUK) Corporation up 39% and Six Flags (NYSE:SIX) up 18%, as the vaccine promises to be a ticket to ride. Airlines also soared, with JetBlue Airways (NASDAQ:JBLU) Corp up 21% and Spirit Airlines (NYSE:SAVE) Inc rising 21%.
Stay-at-home winners turned into losers, with Zoom Video Communications (NASDAQ:ZM) Inc tumbling 17% and Peloton (NASDAQ:PTON) down 20%, days after reporting strong demand for its bikes.
In non-vaccine related news, Beyond Meat (NASDAQ:BYND) was temporarily halted after McDonald’s (NYSE:MCD) said it was developing a proprietary plant-based product. But then Beyond Meat came out and said, in fact, it is co-creating the McPlant patties, reversing losses.
Biogen (NASDAQ:BIIB) tumbled 30% after the U.S. Food and Drug Administration voted against its experimental Alzheimer’s treatment.
Tech stocks sat out the rally, with Apple (NASDAQ:AAPL) to Netflix (NASDAQ:NFLX) falling.
Monday also marked the first trading day after Joe Biden was projected as the United States of America’s 46th president.
Gold melted down on the vaccine news, sinking some 5% at one point. Oil jumped almost 10% on hopes the economy will be making a comeback as governments are expected to let us out again upon vaccination.
