Number of the Day Shows Dow Was Waiting for a Vaccine
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That’s how many months it took for the Dow Jones Industrial Average to fully recover from the crash triggered by the COVID-19 pandemic.
The popular stock market gauge rose to new heights Monday, rising 1.6% to close at a record high of 29,950.44, after regulators released promising news about a vaccine against the virus. The National Institutes of Health reported that a vaccine candidate from Moderna was 94.5% effective in a trial, finally pushing the Dow past its Feb. 12 high. It was later that month that the market torpedoed amid fears that the pandemic would cripple the economy.
The Moderna news came just a week after Pfizer announced similarly positive preliminary results from its own vaccine trial, sending some members of the Dow up by double-digit percentages.
“The analogy I’ve been using since Pfizer’s announcement is that it represents a light at the end of the tunnel,” Liz Ann Sonders, chief investment strategist for Charles Schwab, wrote in an online commentary. “However, given the rampant resurgence in the virus case count, hospitalizations and deaths; we remain in the dark depths of the tunnel. It took eight months between March and October to register nine million cases; while it only took 10 days to get to the 10 millionth case. As good as the vaccine news is—from both Pfizer and Moderna—they are not the perfect elixir for what ails us, either from a health or economic perspective.”