Monday saw the stock market rise as news of positive developments on coronavirus treatment, as well as a possible vaccine authorization, arrived.
Positive Signs for COVID Treatment Lead to Stocks Rising
This week, markets responded to the news of an emergency use authorization for a coronavirus treatment that has seen success, as well as news of the potential authorization of a vaccine soon.
The S&P 500 and Nasdaq both hit new highs, surpassing last week’s record levels, with the Dow Jones Industrial Average closing above 28,000 for the first time since February. Travel, airline and other stocks also rose, with American Airlines, Wynn Resorts, Norwegian Cruise Line Holdings and others each seeing huge gains. Apple shares also recorded their highest intra-day level ever.
The US Food and Drug Administration on Sunday issued the emergency use authorization for convalescent plasma. Despite the treatment method not fully undergoing all clinicial trials, the FDA has deemed the data so far to be proof enough that the product could be effective in treating the disease, with the benefits outweighing the risks.
President Donald Trump called the approval a “very historic breakthrough,” saying that a study of patients by the Mayo Clinic shows that the treatment reduced mortality by 35%.
The Trump administration is also reportedly looking to fast-track a UK coronavirus vaccine candidate, developed by biopharmaceutical company AstraZeneca and Oxford University. The move would grant the vaccine emergency use authorization and would bypass typical US regulatory standards if done, although a spokesperson for the US Health and Human Services department said that it would be “absolutely false” that an EUA would be issued ahead of the US presidential election.