Asia Morning: Dow Up Over 800 Points on Vaccine Optimism

While the Nasdaq 100 tumbles over 2%...

Trading floor 2

On Monday, U.S. stocks gave up most of early gains to close mixed. The Dow Jones Industrial Average soared over 1600 points at open but closed 834 points higher (+2.95%) at 29158. The S&P 500 rose 41 points (+1.17%) to 3550, while the Nasdaq 100 tumbled 260 points (-2.16%) to 11830.


S&P 500 Index (Daily Chart) : Bullish Gap

Sources: GAIN Capital, TradingView


Market sentiment was boosted by the fact that a COVID-19 vaccine being developed by Pfizer (PFE +7.68%) and BioNTech (BNTX +13.91%) was found to be over 90% effective. 

Energy (+14.22%), Banks (+13.2%) and Insurance (+5.63%) sectors performed the best, while Retailing (-3.3%), Household & Personal Products (-3.1%) and Semiconductors & Semiconductor Equipment (-1.83%) sectors lagged behind. Energy companies such as Diamondback Energy (FANG +30.96%), National Oilwell Varco (NOV +27.33%) and Valero Energy (VLO +31.2%) became top gainers amid an 8% jumped in oil prices.

Amazon.com (AMZN -5.06%) slid.

Approximately 72% (75% in the prior session) of stocks in the S&P 500 Index were trading above their 200-day moving average and 62% (68% in the prior session) were trading above their 20-day moving average.

European stocks closed substantially higher. The Stoxx Europe 600 jumped 3.98%, Germany's DAX surged 4.94%, France's CAC 40 soared 7.57%, and the U.K.'s FTSE 100 was up 4.67%.

U.S. Treasury bonds encountered a selloff as positive news on Pfizer's COVID-19 vaccine drove investors into riskier assets such as stocks. The benchmark 10-year Treasury yield surged to 0.955% from 0.817% Friday.

Spot gold plunged $83 (-4.29%) to $1,867 an ounce..

U.S. WTI crude futures (December) advanced $2.82 (+7.59%) to $39.96 a barrel.

The U.S. dollar regained some strength against other major currencies, as a breakthrough in coronavirus vaccine diminished expectations of more economic stimulus measures. The ICE Dollar Index rebounded 0.65% to 92.82.

The Japanese yen and the Swiss franc were the worst performers among major currencies. USD/JPY soared 1.95% to 105.37, and USD/CHF rebounded 1.39% to 0.9127.

EUR/USD slid 0.50% to 1.1813 halting a four-day rally.

GBP/USD climbed for a third session as it edged up to 1.3165 from 1.3159 Friday.

AUD/USD rose 0.33% to 0.7282 (day-high at 0.7340).

USD/CAD once lost the 1.3000 level before closing at 1.3008, down 0.23% on day.


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