Pfizer (PFE) offered a glimmer of hope to investors and the world today after releasing early results for their COVID-19 vaccine trials which appears to be 90% effective. Then after hours, the FDA issued an emergency use authorization to Eli Lilly’s (LLY) antibody treatment, providing another tool which can help save lives.
Markets rallied significantly on the news, but the S&P 500 closed up only 1.17% by the end of the day. The initial bounce in the broader markets dissipated as major index constituents like Microsoft (MSFT), Amazon (AMZN), Apple (AAPL), and Facebook (FB) sold off.
However, many of the hardest hit industries held onto their gains. The KBW NASDAQ Bank Index closed up over 13%, United Airlines (UAL) was up 19.15%, and Carnival Corporation (CCL) gained nearly 40%. It remains to be seen if this will mark the beginning of a long-term rotation into value investments, or this news simply acted as a reminder to investors that there are viable alternatives to big tech.