DOW JONES PRICE OUTLOOK: STOCKS SURGE TO NEW RECORD HIGHS DRIVEN BY MODERNA VACCINE RESULTS
- Dow Jones price action surged during Monday’s trading session and closed at a new record high
- Major stock indices jumped higher largely in response to Moderna coronavirus vaccine results
- Risk of complacency builds as investors look past COVID-19 hospitalizations, lockdown measures
The Dow Jones just notched a fresh all-time high as stocks soared into the close during Monday’s trading session. DJIA advanced 1.6% on the day and a touch below the psychologically-significant 30,000-price mark. Other popular stock market benchmarks like the S&P 500 and Russell 2000 also printed new records on a closing basis after gaining 1.2% and 2.4% respectively.
The tech-heavy Nasdaq was up 0.6% and remains a laggard month-to-date. Equities pushed higher largely on the back of another set of encouraging coronavirus vaccine results with Moderna reporting a 94.5% efficacy in preventing the spread of COVID-19. While positive vaccine news provides investors with reason to remain upbeat regarding stock market outlook, there is a growing risk of complacency over the short-term.
DJI – DOW JONES PRICE CHART: 2-HOUR TIME FRAME (09 OCT TO 16 NOV 2020)
This is considering state-implemented coronavirus lockdown measures continue to mount as the pandemic accelerates and overwhelms health care systems due to the sheer volume of COVID-19 related hospitalizations and deaths. Coronavirus vaccine news gives hope and investors reason to stay forward-looking, but the near-term threat from more lockdowns and corresponding reduction in economic activity looms large. Also, the DailyFX Economic Calendar details that monthly US retail sales data is scheduled for release Tuesday, 17 November at 13:30 GMT, which could spark a bearish market reaction if the figures disappoint consensus estimates.
Connect with @RichDvorakFX on Twitter for real-time market insight