US Markets Strong closing on news of positive corona vaccine outcome.
Let’s explore the reason for Surging US markets
Moderna announces that its trial corona vaccine developed antibodies on 45 patients under trail, a key development.
Few days before Gilead Sciences in its report announced a positive result on treatment related to corona patients using Remdesivir medicine.
In its report the company highlighted low mortality rate and high recovery of corona patients using its drug.
US Stocks rose on positive results on treatment of corona virus patients
Asian markets are trading with red biased this morning. (8:00 A.M)
SGX Nifty is in red note this morning. (8:00 A.M.)
Why US markets are trading in green?
Any positive news on corona vaccine front will lift the sentiments on stock markets. This is what happening in US which from last few days are reacting to positive news on corona vaccine. Stocks are trading with positive outcome as economy reopening depends upon the success of this vaccine.
Moderna announced that its corona vaccine is showing positive result on 45 patient under trial and they developed antibodies to fight against this virus. This is too early to say something but any postive news will lift the markets.
Few days before US Stocks rose on news related Gilead’s Remdesivir drug clinical result showing low mortality rate and high recovery of corona patients under clinical trials.
This has lifted sentiments in US markets and stocks ended with positive gains.
Cases are rising at fast pace worldwide with U.S. toping the list with more than 3.3 million cases. From last few days, U.S. is seeing 60000 corona cases daily.
This is the reason for restricting the reopening activities in U.S. by many Governors of different states.
Still the uptrend from March 2020 is intact and rally will continue on the back of positive economical data is floating around the world. So traders should use this opportunity to build portfolios for long term.
Still there is lot of under performance in Asian Markets and sooner or later these markets will have catch up rally as US markets are trading all time High.
The markets are lifted due to huge liquidity supported by the Governments & Central banks of different countries. This surge may continue further once corona vaccine hits the market and result in bull run.
Traders should not short the market for merely today’s fall as this is only a profit booking and may trap them at these levels.
Our suggestion is remain buyer to these markets and use buy on dip strategy.
Dow Jones Industrial Average increased by 227.51 points, or 0.85%, close at 26,870.10.
The S&P 500 rose by 29.04 points, or 0.91%, ends at 3,226.56.
Nasdaq Composite Index hit new high and gained by 61.92 points, or 0.59%, close at 10,550.49.
Asian Markets In Morning
Time of data collection: 8.00A.M
Nifty 50 outlook for the day.
SGX Nifty is suggesting that Indian Markets will start at around 10600 level. Today strategy is to lets the market decide the direction as today it will start at make or break level. Any dip below 10500 will bring bears in the market and further fall not ruled out. Incase nifty trade upward to 10700 then go long. Shorting the market is still not wise as overall trend is positive.