Among Pfizer's COVID-19 vaccine breakthrough, the Dow closed up more than 800 points, gaining more than 1,300 points at its highest point in the day. Contrastingly, the NASDAQ fell about 180 points (1.5%) today. Let's jump right into everything in more detail.
Some COVID-19 Vaccine Good News?
Yes, Pfizer has reported effective vaccine trials for COVID-19, bringing everyone's hopes high, and causing a huge rally in the stock market. There's no denying a COVID-19 will be a breakthrough medical development, but as far as the stock market goes, we could see a rally like today, as well as a potential selloff in certain sectors and companies, which we also saw today.
Dow soars, but NASDAQ falls
At first it seems confusing, especially if you don't stop to carefully analyze the situation. The stock market is precise, and isn't always constant. So when we see such a huge rally in the Dow, we're typically used to seeing the other two major indexes increase, but that wasn't the case today. The NASDAQ, fell around 1.5% today; keep in mind that the NASDAQ is composed primarily of technology and similar companies, primarily used during the stay-at-home time period. On the hopes of a vaccine, which could lower the threat of the pandemic, lift the cause for staying at home, and see an increase back to normal life, there was a selloff in these "stay at home" companies by investors. Today was a prime and interesting example of how one section of the stock market can rise so much, and the other can be stuck being affected negatively.
On top of this, the markets were already following a confusing election after Joe Biden was declared the projected winner of the rocky 2020 election.
The big question is, can this rally continue? Or will it drop tomorrow. Let's take a look at the live futures, as of 5:20PM, November 9.
(Source: CNBC Business News)
As we can see, the markets are mixed again, and will be experiencing a similar day to today, if the Pre-Market is correct. The Dow will continue to rise from the hopeful Coronavirus Vaccine outtake, and unfortunately, the NASDAQ selloff will continue, falling even more than today, which is logically expected if Coronavirus vaccine trials improve.
Summary: On a hopeful Pfizer vaccine trial, the markets were mixed with the Dow rising, and the NASDAQ logically falling as people sell stay at home companies' stocks. Looking at the pre-market, it looks like tomorrow will be similar to today, but all we can do is hope for the best, in the markets, and the Coronavirus situation.
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