Dow Futures Gain Amid Coronavirus Vaccine, Treatment Hopes

The Monday Market Minute

  • Global stocks extend gains, with Wall Street set for fresh record highs, as investors cheer a potential breakthrough in coronavirus treatment outcomes.
  • FDA approves emergency use of blood plasma in COIVD-19 patients, which its says could reduce mortality rates by more than third.
  • Reports also suggest Trump administration looking to ‘fast track’ an experimental vaccine being developed by Britain’s AstraZeneca.
  • Global coronavirus cases rise past 23 million, with U.S. infection rates topping 5.7 million. 
  • Oil prices gain as U.S. drilling and refining capacity goes offline ahead of landfall for both Hurricane Marco and Tropical Storm Laura early this week.
  • U.S. equity futures suggest a firmer open on Wall Street heading into a light week for earnings and economic data, highlight by a second reading of GDP and a key speech from Fed Chairman Jerome Powell Thursday.

Wall Street traded higher Monday, while the dollar edged lower and gold prices tumbled, as markets keyed on a statement from President Donald Trump that suggested a potential breakthrough in coronavirus treatments.

Stocks were also buoyed by a report from the Financial Times that hinted at the possibility that the Trump administration would ‘fast track’ an experimental COIVD-19 vaccine from Britain’s AstraZeneca Plc  (AZN) – Get Report for treatment in the United States.

Trump’s touting of the use of blood plasma in coronavirus patients, however, unveiled at a press conference in Washington Sunday, appears to be the principal catalyst for an overnight rally in stocks that could take both the S&P 500 and the Nasdaq to fresh record highs.

“This is what I’ve been looking to do for a long time,” Trump said of the Food & Drug Administration’s decision to grant emergency use approval to blood plasma treatments, which it said reduced patient mortality rates by more than a third. “Today I’m pleased to make a truly historic announcement in our battle against the China virus that will save countless lives.”

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