Nov 10, 2020
As COVID-19 cases rise on a global scale, so do the contenders for the vaccine. Even though vaccines typically go through years of research and testing, everyone is aboard the race for the first COVID-19 vaccine. Researchers have fast-tracked the process, and some are in final-stage trials. The available vaccines will not be able to cure the virus but prevent people from catching it.
The race began in January when researchers began deciphering the virus’s genome, hoping that they will succeed in making the immune system develop antibodies against the virus.
Some of the biggest candidates for the vaccine include:
- Pfizer + BioNTech (USA + GERMANY)
- Johnson & Johnson (USA)
- AstraZeneca + Oxford University (UK)
- Novavax (USA)
- Sinovac (CHINA)
- Sputnik V (RUSSIA)
- Moderna (USA)
The markets have been roaring for the past few days as companies announce their developments regarding the vaccine. Among the biggest headliners are Pfizer and BioNTech, who claimed that their vaccine is 90% effective in preventing the contraction of COVID-19. The two-dose vaccine was tested on 43,538 participants and has provided excellent preliminary results with only 94 positive cases observed out of the bunch. Their stock climbed by 9% after the announcement.
— World Economic Forum (@wef) November 10, 2020
Another company disrupting the market is Novavax, whose stock climbed 7% on Monday after being approved for fast-track authorization by the FDA.
Dow was up roughly 3%, S&P 500 closed 1.2% higher, while NASDAQ, which holds many of the tech stocks that have benefited from the pandemic, dropped by 1.5%. Besides the obvious ones, various sectors seem to have enjoyed their strongest daily climbs since March. For instance, stocks of airlines, finance industries, car manufacturers, and many others surged, as hopeful investors took chances on a brighter post-vaccine future.
On the other hand, these announcements have caused investors to pivot away from digital and technological assets. Zoom’s stock took a 17% dive, HelloFresh fell 15%, Facebook and Amazon were down some 5%.
It could be months before any vaccines are rolled out globally, but the market doesn’t care. It seems to be preoccupied with the mere prospect of earning once things have returned to normal.
The World Health Organization (WHO) says nearly 180 vaccine candidates are being tested worldwide, but none has yet completed clinical trials.