NEW YORK: US stocks surged higher at the open on Monday (Nov 9), with all three major indices breaking records after Pfizer announced that its vaccine was 90 per cent effective in protecting against COVID-19 infections.
About five minutes into the trading session, the bellwether Dow Jones Industrial Average had jumped 5.4 per cent to 29,839.45, beating the record set on Feb 12 of 29.551,42.
The broader S&P 500 rose 3.6 per cent to 3,633.6, beating its Sep 2 record.
The tech-heavy Nasdaq spiked to a new record but then slipped back and was up 0.4 per cent to 11,986.12.
"Pfizer's COVID-19 vaccine news has acted like a shot of adrenaline for the markets, triggering one of the biggest single day movements in global equities for a long time," said Russ Mould, investment director at AJ Bell.
"A successful vaccine has greater significance than Joe Biden winning the US election as it would effectively pave the way to restarting economic growth globally," Mould added.
Sectors that had been the most hit by lockdowns, travel restrictions and social distancing introduced to curb the spread of COVID-19 made spectacular moves as traders rushed to price what could be a game changer for markets after months of being roiled by the pandemic.
Pfizer itself rose as high as 17 per cent in trading prior to the open.
By the same token, stocks seen as safe havens since COVID-19 started its worldwide deadly spread, sustained heavy losses, such as conferencing platform Zoom Video which or UK food delivery champion Ocado.
The enthusiasm calmed somewhat pulling back the early gains, although maintaining a solid rise.
"It's a game-changer because the possibility of a vaccine makes it possible to envisage reopening the economy in 2021 and a strong and sustainable recovery", said Emmanuel Cau, head of European equity strategy at Barclays.
"A lot of investors were waiting and positioned for this", he added, noting that Joe Biden's victory in the US presidential election had also lifted a lot of the uncertainty clouding markets recently.
READ: Behind BioNTech and Pfizer's vaccine, an understated husband-and-wife 'dream team'
Europe's banking index, plagued by low interest rates and the fear of widespread defaults in the corporate world, made its biggest one-day jump since the European sovereign debt crisis in 2011, gaining 10.9 per cent.
French banks Societe Generale and BNP Paribas led the way, up 18 per cent and 14.5 per cent respectively.
On Wall Street, JP Morgan and Bank of America were up more than 10 per cent in early trades.
European airlines, hard hit by travel restrictions induced by the pandemic, rallied hard, with BA owner IAG, rising close to 40 per cent.
Earlier, Britain's transport minister Grant Shapps told an online airport industry conference that Britain was making "good progress" with a plan to allow COVID-19 tests to shorten a 14-day quarantine period for those returning from abroad.
The pan-European STOXX 600 index, which was already up after Joe Biden's victory in the US presidential election, jumped 4.5 per cent to its highest since March.
Relief was also palpable in commercial real estate with the prospect of malls welcoming hordes of consumers again. French real estate group Klepierre and Unibail rose 36 per cent and 22 per cent respectively.
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2020-11-09 15:34:14Z
CBMidWh0dHBzOi8vd3d3LmNoYW5uZWxuZXdzYXNpYS5jb20vbmV3cy9idXNpbmVzcy9jb3ZpZC0xOS1wZml6ZXItdmFjY2luZS1zdG9ja3Mtc29hci1tYXJrZXRzLXJlY29yZC13YWxsLXN0cmVldC0xMzUwMTQ2MtIBAA
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