Following a successful preliminary trial data of COVID-19 vaccine by Moderna, the U.S. stocks jumped to a 30,000 record, indicating a long haul investing.
Drugmaker Moderna announced the vaccine proved to be 94.5 percent effective, enticing more investors to inject more money on the Dow Jones. The rise can be attributed to how investors are waiting for the right time to buy more stocks at the time of a pandemic.
There’s a substantial increase of investment in crude oil, with a rally of about 3 percent, while tech and gold gradually fell behind. Treasury is showing potential with a steady run for the first few days following Moderna’s announcement.
With the evidence of a working vaccine on the run, experts are watching what can escalate in the US stock market and the economy. UBS Private Wealth Management managing director Alli McCartney said this period can be a perfect backdrop for the stock market.
“The three segments of the population that are general buyers and investors in this market—it’s the old retail behavior, which is sort of predictable; the new retail investor, which is not, and then it’s the institutional investor. They don’t want to take a lot of near-term volatility,” said McCartney
In addition to the predictable behaviors of investors, financial experts also see a light at the end of the tunnel, which includes promising earnings growth. As 2021 nears, more are optimistic that the economy can retain strong and gain substantial growth.
Earnings growth in the S&P 500 shows a projected consensus of 30 percent in 2021, following an 18 percent dip this year. Now that people can see through the presence of vaccines, the market is expected to come out strong in the next year.