The S&P 500 index and Nasdaq-100 incurred a swift wave of selling in the final hour Friday. Pick your poison for the reasoning, but in the end, it was simply a de-risking ahead of the weekend as the Covid-19 pandemic rages on.
Today, Pfizer and BioNTech said their Covid-19 vaccine is 95% effective and plan to file for an Emergency Use Authorization. This sets it in line with Moderna’s results and the stocks have acted accordingly.
President Trump promised an October surprise, but the developments came just one week removed from one of the tightest elections in history. We have been calling for a bull-run post-election, no matter who wins and as long as the country avoided a ‘blue wave,’ as it removes uncertainties from the risk-landscape.
The S&P tested unchanged on the year overnight into Friday, and the bulls responded. Price action was choppy intraday but could not break the session low, and this set the table for a surge into the settlement.