Will Moderna, AstraZeneca, Pfizer, or others Succeed? Vaccine Complacency could Affect Market Sentiment

Will Moderna, AstraZeneca, Pfizer, or others Succeed? Vaccine Complacency could Affect Market Sentiment

Traders are worried that complacency over the coronavirus vaccine could affect markets, according to CNBC. Five vaccines, from Moderna, AstraZeneca, Pfizer, Johnson & Johnson, and Novavax are in phase 3 trials, but the U.S. Food and Drug Administration has set efficacy of at least 50%. Market sentiment could change in November and December if vaccine efficacy rates remain below the threshold.

  • Markets are pricing favorably in anticipation of the economy opening, and the absence of an efficacious vaccine would render estimates too ambitious.
  • Traders see more risk in weak vaccine efficacy than around stimulus fails.
  • Some traders feel “It’s quite possible the economy could grow at a decent pace in 2021, even if there is not a completely effective vaccine”-Jim Paulsen, Leuthold Chief Investment Strategist.

U.S. stocks are gaining. SPY is up 0.21%

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