How a Coronavirus Vaccine Might Move the Stock Market

Many experts think that until an effective vaccine for the SARS-CoV-2 coronavirus is developed and widely deployed, the U.S. economy won't be able to truly return to normalcy.

They're probably right. While air travel passenger volume has very gradually started to make a comeback from the extreme lows it hit in April, many colleges have already announced plans to reopen their campuses in the fall, and states are gradually relaxing their restrictions on nonessential businesses, gatherings and the like, people's fear of contracting COVID-19 could prevent demand for a host of things from returning to pre-pandemic levels.

Give that, it would seem logical that the development of an FDA-approved vaccine would be the Holy Grail for the stock market. And while final approval of a vaccine would likely be a positive catalyst for stocks, I'm not necessarily expecting a massive spike in the S&P 500 when it happens.

Source Fool.com