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%
