Vaccine Development Frequently Announce The Good News, Stimulating a Strong Rebound in Cyclical Stocks

    On Monday, there was frequent news of vaccine development, and U.S. stocks rose across the board. The Russell 2000 small index remained the strongest, up 2.3%, while the Nasdaq was relatively weak, up 0.8%.

    The pandemic continues to intensify, and the competition for vaccine research and development is also becoming more and more fierce. Following the significant progress made by Pfizer's vaccine last week, another vaccine company, MRNA, announced today that its vaccine's late-stage clinical trial has an effective rate of 94.5%, and only needs to be refrigerated. Unlike Pfizer's vaccine, which requires ultra-low temperature storage, MRNA's stock price rose nearly 10%, and the market also responded positively. Driven by the cyclical category, the market reversed the trend of last Monday and rose in an all-around way. The WHO expects that there may be more good vaccine candidates by the end of this year and early next year. Pfizer's vaccine development partner, BNTX, expects the outbreak to be under control by mid-2022.

    Investors believe that by 2021, there will be several vaccines available, and the economic recovery will not be too far away. The market will continue to rotate in sectors. Economically sensitive sectors such as energy, raw materials, industry and finance, and tourism and catering related stocks rose sharply; while pandemic-beneficiaries and safe-haven stocks were relatively weak.