Coronavirus cases are surging worldwide. Investors fear for a new wave of the pandemic, as it could reverse the course of global economic recovery. Stimulus measures are already exhausted. There may not be enough resources to rebound fast if the pandemic lasts much longer. That’s why the companies working on vaccines are in focus.
Novavax and Regeneron Pharmaceuticals hit 52-week highs after getting U.S. government funding for their coronavirus treatments.
Regeneron Pharmaceuticals recently signed a $450 million government contract to step up the production of its experimental antibody cocktail. The firm’s two-antibody therapy is in late-stage trials as both a preventive and treatment for Covid-19.
Novavax is also planning large-scale manufacturing of its virus vaccine candidate, which is currently in trials. It will get $1.6 billion in U.S. funding to support this project.
Novavax’s stock skyrocketed by 32% to its highest peak in almost four years. Meanwhile, Regeneron stock jumped by 2.2% to 640.88 after hitting a record of 653.53 intraday. It closed slightly lower than a 646.43 entry.
Vertex Pharmaceuticals and online bond platform MarketAxess cleared at least one buy point. Snapchat parent Snap stock hit an all-time high as the U.S. contemplates whether to ban the popular TikTok app, owned by China’s Bytedance.
Infection cases have reached 3.09 million in the U.S. Even though deaths have remained low, on Tuesday, they hit their highest level since June 10. The United States gained more than 55,000 coronavirus cases that day.
The pandemic threatens the market’s rally. Covid-19 cases worldwide have surpassed 11.98 million. And deaths are above 547,000.
What about other stocks?
The stock market rally pulled back after several days of gains as infection cases surged, and there was a slight uptick in deaths. However, several U.S. stocks gained on Wednesday. The Dow Jones futures soared, while the S&P 500 futures and Nasdaq futures jumped.
Meanwhile, Tesla increased slightly, extending its huge advance from Tuesday. Chinese luxury EV rival Nio also soared to a record high, amid Chinese EV sales data.
On the other hand, the Facebook stock declined slightly. Traders focused on FB stock overnight after ad boycott organizers labeled a meeting with Facebook CEO Mark Zuckerberg as a disappointment.
All in all, the Dow Jones futures climbed up by 0.1% vs. fair value, while the S&P 500 futures gained 0.2%, and the Nasdaq 100 futures grew by 0.5%.
