March 8, 2021
(Bloomberg) — Stocks are extending a global rally on the clearest sign of progress yet...

(Bloomberg) — Stocks are extending a global rally on the clearest sign of progress yet in developing a vaccine to stem the Covid-19 pandemic. Futures on the S&P 500 jumped 3% after news that the vaccine being developed by Pfizer Inc. and BioNTech SE prevented more than 90% of infections in a study of tens of thousands of volunteers. Contracts on the Russell 2000 Index of small-cap stocks surged 7%.Pfizer’s Covid Vaccine Prevents 90% of Infections in Large StudyThe vaccine announcement gives investors another dose of good news after the end of the U.S. election. Global markets have rallied for the past week on optimism over American policy, speculating that there’s likely to be some easing in the trade war tensions with China and another stimulus package. “For stocks, this is likely the best of both worlds,” said Joyce Chang, chair of global research at JPMorgan Securities. “A GOP senate majority should ensure that Trump’s pro-business policies stay intact. Under Biden, additional tariffs that fueled the trade war are unlikely to materialize.”There’s precedence for the market’s gains to continue. Since 2000, every time the S&P 500 was higher heading into Election Day, November and December came in green, too. The first years of presidential terms have also been good ones of late. Since 1986, according to Leuthold Group data, they’ve seen average gains of 18.6%.Biden Stocks Will Have History and Fed on Side, Not Much ElseThese are some key events coming up:Brexit trade-deal talks between the U.K. and EU continue in London MondayTuesday is the EU’s target date for triggering tariffs on as much as $4 billion of U.S. goods in retaliation over illegal aid to Boeing Co.Alibaba holds its annual Singles’ Day on Wednesday, an online global shopping phenomenon that had $38 billion of sales last yearECB President Christine Lagarde, BOE Governor Andrew Bailey and Fed Chair Jerome Powell are among the speakers Thursday at an online ECB Forum entitled “Central Banks in a Shifting World”Finance ministers and central bankers from the Group of 20 hold an extraordinary meeting Friday to discuss bolder action to help poor nations struggling to repay their debts.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

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