Yesterday we joked that, now that all the “good” covid vaccine news have been priced in, if stocks are to go up then the vaccine makers must keep their mouth shut for the next few weeks.
Turns out the joke was on us, because shortly after the latest positive coronavirus vaccine news, this time from AstraZeneca, which hit just before 2am ET.
Futures promptly tumbled, hitting session lows just after the European open.
Why? Because as we “joked”, markets are now ignoring any incremental “good” vaccine news, and instead equity investors seem to be more concerned about lockdown measures to stop the spread of the virus, especially following yesterday’s surprise announcement that New York would shutter its schools again, a move which is expected to be copied by other cities across the country. Meanwhile, as trillions of dollars in stimulus and optimism around a vaccine have driven Wall Street to record highs following a coronavirus-driven crash in March, investors have grown wary of the near-term damage caused by tightening restrictions and in the absence of fresh stimulus measures.