The S&P 500 posting 39 new 52-week highs and no new losses has investors and stakeholders doubling down on the main stock indices as the release of Pfizer’s COVID-19 vaccine is rolled out and the expectations of a stimulus bail out continue to increase.
Bright horizons are upon us with the release of the Pfizer COVID-19 Vaccine, despite a report of two allergic reactions from Britain’s medicine regulator on the initial rollout day. While this vaccine is a driving force in having green on the S&P 500 chart, there is still a pandemic to beat. Speculation of a potential stimulus bill being passed will make or break these new record highs and cause the index to remain at its current level or cause a dip once again. Additionally, some investors are worrying about stocks being vulnerable to the potential impending bad news to come with the delay in the global rollout of this vaccine.
While the market is sitting near an all-time high, the thought of House of Representatives not serving the American people looms in the back of each investors mind. Nearly all parties that surround the stock market have been banking on the end of a drawn-out fresh fiscal stimulus relief-package to aid the economy that has been beaten down by the coronavirus. This pandemic has led several million Americans to be laid off, as well as flooded an overwhelmed healthcare system. Senate majority leader Mitch McConnell assured that lawmakers are still looking to pave a pathway toward an agreement on a one-week funding bill to provide more time for a more expansive bill to be drawn up in the future. The idea is to push out this bill before the holidays to keep the economy in check, while Congress heads home for the holidays.
The S&P surpassing 3700 points on Tuesday was just the start to an eventful mid-week for investors alike. Following along on Wednesday, Door Dash Inc.’s IPO opened up at $182. This price was corrected throughout the day and closed at $189.51 (85.79% positive gain). This might be attributed to the $3.37 billion in startup money raised, which is among the largest of its kind in 2020 for the U.S. Also, home improvement chain, Lowe’s Cos Inc., had a 5.88% jump in their share price after news of a 12 billion share buyback plan. Drug Maker Eli Lilly jumped over 5.8% as well backed by their positive data trial for a drug designed to treat type 2 diabetes.
Declining issues this week have outnumbered the advancing ones on the NYSE. On Wednesday this week, the Federal Trading Commission and nearly every state in the U.S. joined sides in a lawsuit against Facebook, Inc. The lawsuit was based off the notion that Facebook, Inc. broke an antitrust law. The social media superior is facing a breakup of their assets as a result of the lawsuit.
Coming as a result of the negative news in the market, the S&P 500 has retreated down from its recent record highs this week. However, brighter days are in front of us with this vaccine for COVID-19 alongside a potential type 2 diabetes drug in development.