On Monday, Wall Street had a wild session, before finishing on a more mixed note amid expectations for a successful coronavirus vaccine. A very promising first evaluation of Phase 3 of their vaccine candidate trial, which is considered 90 percent successful, was released by Pfizer Inc (PFE) (+7.6%) and BioNTech SE (BNTX) (+13.9%). Markets have hailed Joe Biden’s win in the US presidential race, which Donald Trump, who has yet to concede defeat, does not seem to be seriously contested. Although gold dropped 5 percent, WTI oil soared 8.5 percent.
In some states, Donald Trump has set up teams for a new count, and his attorneys will look for facts to support the allegations of voter fraud by the Republican president. U.S. election officials have so far said they have found no major violations.
However, during the transition phase that starts before Joe Biden officially assumes office on 20 January, Donald Trump maintains the power to block, with the first effect of delaying the implementation of a comprehensive package of economic stimulus anticipated by investors for a period of several months. No compromise could be reached with Congress on a new ‘kit’ that could take over from initiatives of more than $3,000 billion already pumped by the government since last March, amid bitter talks in the weeks leading up to the election.
The United States, in the event of a sharp downturn in the U.S. economy, it is likely that the Federal Reserve will return to the frontline of promoting growth. Last week’s Fed meeting preserved its ultra-accommodative monetary policy as it stands, though reiterating that it is prepared to “use all the instruments” at its disposal when required.
At the close on Monday and after rising almost 5 percent and hitting record highs in the session, the Dow Jones index jumped 2.95 percent to 29,157 points. The large index S&P 500 added 1.17 percent to 3,550 points, after also going on to fresh peaks during the session. At 11,713 points, the Nasdaq Composite ended the day falling 1.53 percent.
The last Dow Jones record at the close was 29,551 points on February 12, before the Covid crisis, while on September 2, the Nasdaq and S&P 500 set milestones, backed by technology stocks and GAFA, before consolidating in the face of uncertainty over the U.S. presidential election.