Dow futures climbed 500 points on recovery hopes and vaccine news
U.S. stock futures indicated a powerful open for Wall Street on Tuesday after a long holiday weekend, as investors seized on fresh coronavirus vaccine news and signs that global economies are slowly starting to crawl back from the pandemic shutdown.
A cautious close for markets on Friday, ahead of the Memorial Day holiday weekend, came amid concerns over rising U.S.-China tensions, but investors seemed more focused on signs of life among major economies.
Japan Prime Minister Shinzo Abe announced plans for another round of stimulus and said total aid from the two packages would exceed 200 trillion yen ($1.86 trillion)
“As is the financial market’s want these days though, even the slimmest of positive news on the Covid-19 front trigger a bullish immune response and another wave of the peak-virus trade,” said Jeffrey Halley, senior market analyst, Asia Pacific, OANDA, in a note to clients.
“U.S. Memorial weekend saw the U.S. out in force enjoying their post lockdown freedoms. Japan in addition to announcing more billions in stimulus, signaled that the final lockdowns over their largest cities are ending,” he said.
Also viewed as a positive, late-stage biotech company Novavax Inc. NVAX, -7.90% said it has started Phase 1 human trials of its vaccine candidate. The first phase of the placebo-controlled study will enroll 130 healthy adults; the first round of data from that study is expected in July.
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