Moderna Reports Promising Early-Trial Results For Its COVID-19 Vaccine
S&P 500 futures are up more than 2% during the premarket trading session as investors are optimistic about the reopening of the world economy while the positive data on the potential vaccine helps stocks gain even more ground.
Biotech company Moderna has reported that its experimental vaccine for coronavirus showed promising results in early trials. The company added that it expected to conduct late-stage trials in July. At the time of writing, Moderna shares were up more than 35% during the premarket trading session.
In the U.S., the auto industry is finally back to work although the number of shifts has been reduced. The hard-hit Italy has allowed cafes to reopen, while Spain targets to reopen borders to tourists in late June.
The positive data about the new vaccine and general optimism has allowed investors to shrug off worries about a new round of a trade war between U.S. and China.
The Fed Says It’s Not Out Of Ammunition
The Fed Chair Jerome Powell promised to do everything necessary to support the recovery and stated that the Fed was not out of ammo to help the economy.
The monetary stimulus is the biggest driver behind the recent stock rally so Powell’s comments are bullish for stocks.
Powell added that “medical metrics” were the most important data for the economy and stated that the U.S. will have a steady recovery in the second half of the year if it manages to prevent the second wave of coronavirus.
Oil Rallies Ahead Of June Contract Expiry
The settlement date for the June 2020 contract is May 19, 2020. The front-month June contract is in a rally mode and is currently more expensive than the more actively traded July 2020 contract.
At this point, it is clear that the catastrophe that happened to the May 2020 contract, which went into the negative territory ahead of expiry, will not be repeated.
Oil gets a boost from the general market optimism as well as from the previously announced production cuts which helped stabilize the market. Oil-related equities will likely enjoy significant upside today and help the general market gain more ground.
This article was originally posted on FX Empire
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