Global equites spiked on Monday following a report drug dealers Pfizer and BioNTech said they invented a Covid-19 vaccine that is more than 90 percent effective. The Dow ended the day up nearly 3 percent, marking its highest close since February.
Convinced the vaccine would instantly end the COVID War, terribly plummeting travel, retail, banking, and hospitality sector stocks spiked. Retailer Kohl’s shot up 20 percent and firms such as Carnival, the sinking cruise line company, soared 39 percent; near-empty American Airlines went up 15 percent; and bankster’s JPMorgan Chase and Bank of America both rose 14 percent on Monday.
With expectations that a vaccinated society will leave their lockdown lives, the tech sector – which boomed as more people worked from home, zoomed, shopped online, learned online, and lived online. The tech-heavy Nasdaq, up 33 percent this year, closed down 1.5 percent yesterday.
Also hit hard were sanitizer-rich companies such as Clorox and the pandemic-rich streaming company Netflix, which fell 11 percent and 8.6 percent, respectively.
Today, while the Dow closed up 263 points, the Nasdaq was off 1.37 percent.
TREND FORECAST: The rush to get vaccinated will boost equity markets and the locked down global economies.
We forecast that while artificially inflated stock markets will continue to spike on vaccine news and money pumping injections by the Federal Reserve and Washington, the economic damage inflicted upon tens of millions of businesses and hundreds of millions of lives and livelihoods will not be saved by a vaccine.
And, yes, with a vaccine, schools, restaurants, tourism, hospitality, and other service sector businesses will rebound from their COVID War lows but will again decline as the economic toll of the “Greatest Depression” sweeps the globe.
