Pfizer announced a COVID-19 vaccine candidate with a 90% success rate on the 9th of November 2020. What happened to the stock markets on this day?
Take away :
Pfizer candidate vaccine announcement effect is straightforward for the company: Pfizer Stock increase by about 7% between the 6th November closing (36.4 USD) and the 9th November closing (39.2 USD). But the real impact is that “investors hope that some kind of normality could be regained” (Business Insider). The vaccine final-phase study creates a pivot in the stock markets price returns: a move from tech and at home sectors (retail) to the ones that have been the most negatively impacted by the COVID-19 shut-down (finance, energy, durables, etc). Most important French capitalizations, CAC40, have seen a mean increase of more than 8% on that day. This is exceptional due to the aggregate nature of the indicator: returns average over many companies. To depict the importance of this intensity, note that some authors state that a price variation of more than 2.5% in absolute (negative or positive) is a jump since it is sufficiently large to be remarked by daily news.
- Stocks quotations and sector data are from IEX Cloud.