The Dow Jones, S&P 500, and Nasdaq indexes all enjoyed reaching record highs in the past week, with market activities being heavily influenced by news regarding the race to develop a COVID-19 vaccine.
Pfizer (PFE) and BioNTech (BNTX), who are at the forefront of the development of the first effective Coronavirus vaccine, reported significantly strong interim results while Moderna (MRNA), another leading biotech company at the forefront of the vaccine race also exceeded its own expectations.
While this news resulted in a halt in the growth experienced by companies that surged during lockdowns, such as Zoom and Microsoft, regular “real economy” shares surged upwards, including those from industries such as travel, energy, and finance.
Some of the standout performers for the week included companies hailing from China’s electric vehicle industry such as Xpeng Motors (XPEV) and Li Auto (LI). Several Chinese eCommerce giants enjoyed strong finishes to the week as well, particularly Pinduoduo (PDD) which reached its first-ever profit.
Shifting back to the biotech and pharmaceutical companies in the race for a COVID-19 vaccine, Pfizer (PFE) and BioNTech (BNTX) both enjoyed strong starts to last week. While Moderna was an exception, the biotech company enjoyed a positive surge after Dr. Antony Fauci confirmed his belief that Moderna’s vaccine would be just as effective as that of frontrunners Pfizer and BioNtech.
