Jakarta, CNBC Indonesia – Futures contracts (futuresThe stock exchange index of the United States (US) on Monday (9/11/2020) traded thousands of points, following news of the effectiveness of the Covid-19 vaccine made by Pfizer which reached 90%.
Contract futures The Dow Jones Industrial Average flew up to 1,201 points (+ 4.3%), indicating the Wall Street index will open up more than 1,200 points. The S&P 500 and Nasdaq index also jumped, by 3.6% and 2%, respectively.
The news from the coalition of US pharmaceutical giants Pfizer and German biotechnology company BioNTech is like oil on Wall Street that is being burned by the optimism of Democratic presidential candidate Joe Biden’s victory.
Before the news surfaced, Dow futures only rose by 400 points. The 90% effectiveness result was much better than market expectations. White House Health Advisor Anthony Fauci previously rated the effectiveness of the vaccine by 50% -60% is good enough.
The former vice president won presidential elections in Pennsylvania and Nevada, according to NBC News on Sunday. These results are expected to minimize the drag on the results of the largest political celebration in the US.
On the other hand, the market is increasingly convinced that the Democrat Party will not wipe out the Senate and DPR, so that plans to raise corporate and individual income taxes will not be easily passed.
“The Biden presidency with the Senate under Republican control complicates tax increases which were previously the biggest fear of investors,” said Brian Levitt, Invesco’s global trading planner, in a research report cited. CNBC International.
On the other hand, the Democratic Party’s calm leadership style is considered unlikely to trigger the risk of a trade war going forward. Democrats are expected to maintain their dominant position in the DPR, while control in the Senate remains uncertain.
Over the past week, the Dow Jones and Nasdaq index jumped 6.9% and 9% respectively, following the news of the election results. Meanwhile, the S&P 500 index rose 7.3% in its biggest weekly rally since 1932.
Technology shares were the main lifter among the 11 sectors in the S&P 500, with a gain of 9.7%. Investors are increasingly chasing stocks after the prospect of high tax policy faded while prospects for a landslide victory for the Democratic Party strengthened.
The rally came even after incumbent presidential candidate Donald Trump refused to admit defeat, vowing that his team would begin “processing cases” in court to ensure election laws were followed.
Biden is scheduled to announce on Monday the frontman who will occupy an important position in the anti-Covid-19 task force that he will lead after the inauguration. The US reported more than 126,000 new cases in two consecutive days.
CNBC INDONESIA RESEARCH TEAM
(ags/ags)
– .
