Why virus stocks are driving market volatility

The market’s erratic response to lukewarm medical research for COVID-19 treatment and vaccine candidates isn’t expected to slow down as investors pin their hopes for a recovery on the high-risk biotechnology sector.

See also:Moderna's stock soars, then dips, after questions arise around the limited data shared about its COVID-19 vaccine The publication of preprints has likely been a contributor to some of the market volatility, Mellon analyst Amanda Birdsey-Benson said. “They are giving a lot of false hope and a lot of disappointment.”

Since the start of the year, the SPDR S&P Biotech Exchange-Traded Fund XBI, +0.99% has gained 7.8%, making the biotech sector a top three performer among S&P ETFs during a year in which the coronavirus pandemic has hurt markets and decimated jobs. Several virus stocks began rallying by Jan. 23. In comparison, the S&P Low Volatility Index is down 14.9% for the year, while the S&P 500 SPX, +0.48% has declined 6.2%.

“With shares now down [about] 14% from last month’s highs — that we believe were fueled by constant remdesivir newsflow and overly optimistic expectations for significant NT remdesivir revenues — we now see a greater valuation disconnect and even more attractive buying opportunity,” RBC Capital Markets’ Brian Abrahams wrote in a May 27 note to investors.

So we’re made to believe that a bunch of people armed with a cup of coffee and a $1,200 stimulus check are affecting VIX? It can’t possibly be the Fed policies or the the billions from funds?

It had better not take that long this time or there will BE no market.

This is a fact many moderna speculators don't want to understand.

Well duhh! That’s why it’s funny when Robinhood investors keep driving up vaccine makers.

United Kingdom United Kingdom Latest News, United Kingdom United Kingdom Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Here’s why Citi says stocks have rallied — and why new fuel for gains is now neededIt has been another incredible month for stocks, even if Thursday’s session finished on a weak note. A Citi strategist mentioned that the rally was done without flows coming into equities, which particularly for stocks outside the U.S. is rare.
Source: MarketWatch - 🏆 3. / 97 Read more »

Why Rising U.S.-China Tensions Are The Biggest Threat To The Stock Market RallyTwo threats to the stock market rally are China’s growing belligerence and the slow reopening from COVID-19 lockdown in big states, such as New York, Illinois and California. Over 100,000 dead in the USA in 10 weeks from Coronavirus, 41 million unemployed, 25% of workforce out of work, several small companies going out of business permanently, and bankruptcies and evictions soaring. No cure or vaccine. Country is more divided than ever. balloon or Harley, if you had to choose one, which would it be
Source: Forbes - 🏆 394. / 53 Read more »