The good news of the new vaccine on Monday boosted investor confidence again. The novel coronavirus pneumonia vaccine jointly launched by the pharmaceutical company, AstraZeneca and University of Oxford, said that the new vaccine for crown pneumonia was 90% effective and no serious side effects. It became the third report of effective vaccine discovery in this month, and promoted the collective rise of US stocks. The standard & Poors 500 index rose 20.10 points, or 0.56%, to 3577.60; the NASDAQ index rose 25.70 points, or 0.22%, to 11880.63; and the Dow Jones index rose 327.80 points, or 1.12%, to 29591.27.
Cruise and airline stocks generally rose, with carnival shares up 3.5% and United Airlines up 2.5%.
New energy vehicle stocks rose sharply, Tesla rose 6.5%, and Xiaopeng auto rose nearly 34% to $72.17, with a total market value of more than $50 billion. Ideal car rose by more than 14%, while Weilai rose by more than 13%, setting new closing records.
Although novel coronavirus pneumonia has increased in the US, the number of positive vaccine tests released this month has reassured investors, and stocks related to economic recovery have hit a new high. The Dow rose 10% in November, while the S & P 500 rose 8% over the same period.
Adam crisafulli of vitalknowledge points out that three vaccines have been tested to have an effective rate of 90% or more. Health officials in the United States and the European Union may soon approve the use of the relevant vaccines, which will start as soon as the end of the year. But be wary that with the surge of cases and the governments hesitation on stimulus, the optimism brought by the vaccine cant offset the recent severe epidemic, and this weeks holiday celebrations may further aggravate the epidemic.
U.S. PMI data exceeded expectations in November, the best performance in five years
In addition to the vaccine, strong economic data also boosted market sentiment.
In November, the initial PMI value of manufacturing industry in the United States was 56.7, which was the highest in six years, exceeding the expected 53, which was 53.4 in the previous month; the initial PMI value of service industry in the United States in November was 57.7, which was the highest in five years, exceeding the expected 55.3, and 56.9 last month.
Another school of analysis believes that although the release of PMI data exceeded expectations, the current situation of consumer spending is still deteriorating, which is likely to hit economic growth. JP Morgan economists expect that deteriorating consumer spending could drag down growth in the first quarter of next year and cut U.S. GDP growth to - 1% in the first quarter of next year.
On Monday, Goldman Sachs lowered its fourth quarter GDP growth forecast to 3.5% from 4.5% and lowered its GDP growth forecast for the first quarter of 2021 from 3.5% to 1%.
Alli McCartney, an analyst at UBS wealth management, said: Yellens achievements in the Fed have been outstanding, and investors are more comfortable with her fiscal role, especially now that the economy is facing great challenges, including avoiding further recession and reducing new cases.
Economic data picked up quickly, and gold prices fell $40
Gold prices novel coronavirus pneumonia fell nearly 2% on Monday, and fell 40 dollars, the lowest level in four months, as PMI data were substantially better than expected and optimism about the new crown vaccine vaccine boosted investors hopes for a fast rebound. Spot gold fell 1.7% to $1838.61 an ounce, after falling to $1834.95. COMEX gold futures fell 2% to $1835.50.
Edward Moya, senior analyst at Onda securities, said: the strong PMI data in the United States dampened the market demand for fiscal stimulus. The data showed that business activity in the United States grew at the fastest rate in five years in November, which also showed that the economy was recovering from the impact of the epidemic. No one expected the PMI data of services and manufacturing to be so good, and the gold price fell below the key US $1850 Yuan level may trigger a stop loss, causing a sharp drop
The US dollar index also rose sharply, rising 0.3% to 92.54 from a two-month low of 92.8. The rise in the US dollar also led to a rise in US Treasury yields, with the yield on 10-year Treasury bonds rising 3.17% to 0.855%.