Is the Stock Market Getting Ahead of Itself on COVID-19 Vaccine News?
Ever since the coronavirus crisis began early this year, investors have waited for a final resolution that would allow life to get back to normal. On Monday, market participants decided that they'd gotten their wish, based on a clinical trial of a COVID-19 vaccine candidate that showed encouraging results.
That sent major benchmarks soaring. As of just after 11 a.m. EST, the Dow Jones Industrial Average (DJINDICES: ^DJI) was up 1,062 points to 29,386. The S&P 500 (SNPINDEX: ^GSPC) jumped 88 points to 3,598, and the Nasdaq Composite (NASDAQINDEX: ^IXIC) rose 68 points to 11,963. If those figures hold up for the Dow and the S&P, they would represent all-time highs for the two benchmarks.
Based on the indexes' big moves, though, you'd think that someone had found a permanent cure and made it available to everyone worldwide instantaneously. Unfortunately, some huge challenges remain ahead. The stock market is forward-looking, but there's still a question of whether even long-term investors are getting hyped a bit earlier than is appropriate.
Source Fool.com
