Sign in Subscribe
Pharmaceutical industry

US Stocks Surge as Tech Giants Rally and COVID Vaccine Trials Boost Optimism

Strategic Insights

— 2 min read

US stocks erased early losses on Monday to close higher, fueled by tech giants' outperformance and positive COVID-19 vaccine trial results. The tech-heavy Nasdaq Composite notched a record high, while the S&P 500 reached its highest level since February. Tech mega-caps such as Apple, Microsoft, Netflix, and Facebook all soared, with Amazon rocketing higher after Goldman Sachs boosted its price target to match the Wall Street high.

The tech sector's strong performance comes after a muted week, with Netflix's Thursday earnings disappointment prompting concerns. Investors will gain a clearer picture of how tech names performed through the coronavirus-induced slump this week as Microsoft, Intel, and Twitter are slated to reveal quarterly figures. Additionally, a UK biotech firm, Synairgen, spiked as much as 552% on Monday after announcing that its drug was associated with a significantly lower chance of a patient requiring a ventilator or dying.

Key Takeaways:

  • The S&P 500 notched its highest level since February, bolstered by tech stocks' outperformance.
  • The tech-heavy Nasdaq Composite notched a record high, with gains in Apple, Microsoft, Netflix, and Facebook.
  • Amazon rocketed higher after Goldman Sachs boosted its price target to match the Wall Street high.
  • Synairgen spiked as much as 552% on Monday after announcing positive trial results for its experimental coronavirus vaccine.
  • AstraZeneca shares traded as much as 10% higher in London before erasing gains and turning lower in New York after researchers reiterated that the trial data was only preliminary.
  • Officials including Senate Majority Leader Mitch McConnell and Treasury Secretary Steven Mnuchin met in the White House on Monday to discuss another coronavirus stimulus package, with Mnuchin indicating a focus on "kids and jobs and vaccines" and a proposed spending limit of about $1 trillion.

Statistics:

  • The S&P 500 closed at 3,251.84, up 0.8% (https://markets.businessinsider.com/index/s&p_500).
  • The Dow Jones industrial average closed at 26,680.87, up 0.1% (9 points) (https://markets.businessinsider.com/index/dow_jones).
  • The Nasdaq composite closed at 10,767.09, up 2.5% (https://markets.businessinsider.com/index/nasdaq_composite).
  • West Texas Intermediate crude gained as much as 0.8%, to $40.91 per barrel (https://markets.businessinsider.com/commodities/oil-price?type=wti).
  • Brent crude, oil's international standard, jumped 0.7%, to $43.45 per barrel, at intraday highs (https://markets.businessinsider.com/commodities/oil-price).

Sources:

  • Business Insider: "US stocks erased early losses and climbed on Monday as tech giants soared and investors cheered positive COVID-19 drug trial results" (https://www.businessinsider.com/stock-market-news-today-indexes-gain-tech-rally-drug-trials-2020-7).
  • Business Insider: "Leka Devatha made $1 million on a single real estate deal by using a simple strategy with huge upside" (https://www.businessinsider.com/real-estate-investing-strategy-subdividing-large-lots-flipping-leka-devatha-2020-7).
  • Business Insider: "A $47 billion fund manager shares 3 trades she's making for huge upside as the economy recovers" (https://www.businessinsider.com/investing-advice-coronavirus-recovery-trades-with-huge-upside-margaret-vitrano-2020-7).

Read more