US stocks rose sharply on Monday, and the Dow Jones closed at 30,000, after Moderna said its experimental Covid-19 vaccine is very effective

 The Dow is close to 30,000 after Moderna said the vaccine is 94.5% effective.

US stocks rose sharply on Monday, and the Dow Jones closed at 30,000, after Moderna said its experimental Covid-19 vaccine is very effective. That heralded another breakthrough in the fight against the Coronavirus that could ultimately help the world's largest economies recover from a deep recession.

Moderna (MRNA) said in a statement that the first interim analysis of the results of the Phase III trial showed that its vaccine is a 94.5% effective candidate against the Coronavirus. Last week, Pfizer (PFE) said a vaccine it had developed with German drug company BioNTech was more than 90% effective against Covid-19.

There are dozens of other potential vaccines in development, and promising test results from Moderna and Pfizer indicate that vaccines may be an effective way to fight the Coronavirus. Both vaccines require two doses.

US stocks rose after Moderna released the results. The Dow (INDU) added 1.5%, or 440 points. It was less than 100 points away from hitting 30,000 for the first time in its history.

The S&P 500 (SPX) rose 1.2% and the Nasdaq (COMP) rose 0.8%. Moderna's share price increased by 8.5%.

Neil Shearing, chief economist at Capital Economics, wrote in a research note Monday before the Moderna results were announced that the vaccine breakthroughs show "there is a final light at the end of the tunnel."

We forget the fact that President Trump refused to admit defeat in the US elections, or that Europe and the United States are still in the grip of new waves of the virus, or that another major deadline for Britain’s exit from the European Union has passed and that a “no-deal” exit is approaching. The increased potential for a vaccine penetration. "

However, there are reasons why investors should be tempering their enthusiasm. It will take months to distribute vaccines, and the number of coronavirus cases in the United States is rising. The large economies of Europe such as France, Germany and the United Kingdom have closed for the second time.

Moderna said Monday that it expects to have nearly 20 million doses of its vaccine ready for shipment in the United States by the end of this year. She added that the company is on track to manufacture 500 million to 1 billion doses globally in 2021.

Pfizer told CNN last week that it expects to receive 50 million vaccine doses globally this year, and 1.3 billion in 2021.

Moderna

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