Dow Jones and Nasdaq Jump on COVID-19 Vaccine News and Tech Stocks Rally

UTC by Daria Rud · 3 min read
Dow Jones and Nasdaq Jump on COVID-19 Vaccine News and Tech Stocks Rally
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As of midnight Eastern, Dow Jones Industrial Average futures were up around 300 points, or 1%, while S&P 500 futures jumped 1.2% and Nasdaq-100 futures gained 1.5%. 

Last week was replete with corporate deals and positive COVID-19 vaccine news. Due to this activity, there appeared hopes battered stocks would recover and the rally began. On Monday, major market indexes rose. The S&P 500 (INDEXSP: .INX) rose 1.27%, or 42.57 points, to 3,383.54 after its worst week since June. The Nasdaq Composite (INDEXNASDAQ: .IXIC) added 1.87%, or 203.11 points. As a result, Nasdaq Composite ended its worst week since March, and the Dow Jones Industrial Average added 327 points to 27,993.33.

The U.S. stock index futures rose late Sunday as well. As of midnight Eastern, Dow Jones Industrial Average (INDEXDJX: .DJI) futures were up around 300 points, or 1%, while S&P 500 futures jumped 1.2% and Nasdaq-100 (INDEXNASDAQ: NDX) futures gained 1.5%.

Dealmaking Activity

Investors’ optimism was fueled by numerous deals that took place last week. Let us briefly look at the most noteworthy ones.

The chipmaking giant Nvidia Corporation (NASDAQ: NVDA) is expanding its footprint in the semiconductor market. The company announced the acquisition of British Arm Holdings from SoftBank Group Corp (OTCMKTS: SFTBY). As we have reported, the sum of the deal made up $40 billion. It includes a $2 billion payment while signing, $12 billion in cash, and $21.5 billion in Nvidia stock.

Another hotly discussed deal is the acquisition of the social video app TikTok. Its parent company ByteDance has long been holding talks with Microsoft Corporation (NASDAQ: MSFT) but chosen Oracle Corporation (NYSE: ORCL) as its technology partner in the United States. Whether the Trump administration will sanction the new deal is still unclear.

Pharma giant Gilead Sciences Inc (NASDAQ: GILD) has also made an acquisition announcement. The company signed a $21 billion acquisition deal with Immunomedics Inc (NASDAQ: IMMU). The deal will provide Gilead broader access to the field of cancer treatments. In particular, the company will have access to the Immunomedics novel drug Trodelvy.

COVID-19 Vaccine News That Pusged Dow Jones and Nasdaq Indices Higher

Positive coronavirus vaccine news has further inspired investors on Monday.

Over the weekend, pharmaceutical company AstraZeneca Plc (LON: AZN) resumed phase-3 trials for its coronavirus vaccine in the UK. The company had to stop the work because of a serious side effect in one of the patients. However, after a thorough review, health regulators said it was safe to continue with the process.

Another COVID-19 vaccine race frontrunner Pfizer Inc (NYSE: PFE) has said they are planning to start distributing the drug to the U.S. before the end of this year. The company is now driving into Phase 3 clinical trials of the COVID-19 vaccine. The trial will enroll up to approximately 44,000 participants. People with chronic, stable HIV (human immunodeficiency viruses), Hepatitis C, or Hepatitis B infection will be among them.

Business News, Indices, Market News, News, Stocks
Daria Rud
Author Daria Rud

Daria is an economic student interested in the development of modern technologies. She is eager to know as much as possible about cryptos as she believes they can change our view on finance and the world in general.

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