Vaccine news sparks new momentum in stock market

WILMINGTON, NC (WWAY/AP) — Stock prices soared on Monday in response to the potential COVID-19 vaccine development.

The S&P 500 rose 1.2% after Pfizer said an early peek at its vaccine data suggests the shots may be 90% effective at preventing COVID-19, though that doesn’t mean its release is imminent. The index had been up as much as 3.9% earlier in the day, above its record high.

Airline and cruise stocks saw a big jump Monday too as outlooks began to improve for travel moving forward.

Other stocks that reply on people working from home actually took a tumble with Zoom shares falling 17%.

Overall, many investors say stocks look to continue their upward trend in the long term.

“Markets hate uncertainty,” David Allison with Allison Investment Management, LLC said. “When we have a major uncertainty like COVID-19 positive developments, it helps stock prices move higher. It makes investors willing to pay more for a dollars worth of earnings.”

Drops in Big Tech companies like Apple and Microsoft, which have thrived during the pandemic, dragged the Nasdaq composite lower.