Business & Investment

“Bumpia” Pass from Heterogeneous Vaccine Deployment Alert to Normal US Equity Market Bull

As Wall Street takes its eyes off this week’s volatile trading of small caps like Gamestop, the harsh reality of a slow economic recovery from a coronavirus pandemic chills to record highs in the US stock market in January. Some people are worried that they may pour.

“Temporary interruptions in the viral situation will be the biggest driver of the market,” Tony Rodriguez, co-head of the fixed income division at Nuveen, said in an interview.

Negatives warn that recent delays and shortages in vaccine delivery have begun to bite market confidence that the economy will recover sharply this year as immunity begins to build up in the US population.

The discovery of new variants of COVID-19 infection in South Africa, the United Kingdom and elsewhere raises concerns that the United States may not enjoy herd immunity, even if widespread vaccination is achieved. I will.

“The vaccination process is more complex than expected and is inadequate in terms of both timing and distribution,” said Lindsey Piexa, Chief Economist at Stiffel. “Not only does it create new risks for additional variants of this disease, but the economy may face a longer path back to a more bumpy, normal resemblance.”

read: The new South African strain is more infectious and the COVID-19 vaccine is less effective.

So far, investors are willing to overlook disappointing economic data and an uncertain schedule of further fiscal stimulus from Congress, as long as efforts to distribute vaccines appear to be on track.

Still, some U.S. states and local governments have reported a shortage of initial doses of vaccine, and health officials have put a second dose in stock to get the deployment on track. I’m forced to start soaking. Faced with a shortage, some vaccination sites had to cancel or postpone thousands of appointments.

Vaccine shortages are especially serious in the European Union.AstraZeneca
AZN,
-2.77%

Told EU parliamentarians He raised a hackle in Brussels, suggesting that he couldn’t fulfill his promise in time and that pharmaceutical companies could block supply from EU plants to the UK.

According to Mark Hefere, Chief Investment Officer at UBS Global Wealth Management, the increasing number of rollout-related issues may have increased market volatility this week.

S & P 500
SPX,
-1.93%
,
Dow Jones Industrial Average
DJIA,
-2.03%

Nasdaq Composite Index
COMP,
-2.00%

Everything was closed by about 2% on Friday, and after the worst week since October last year, this week we lost more than 3% on each major benchmark.

The bond market barometer of the reflation trade also showed growing suspicion of the US economic trajectory. 10-year government bond yield
TMUBMUSD10Y,
1.063%

After trading to 1.18% on January 12 in anticipation of this year’s economic growth and some inflation, it temporarily fell to 1% this week.

read: Bank of America warns that it will be driven by the three “Rs” to prepare for a 10% fall in stock prices

Jim Baird, Chief Investment Officer of Plante Moran Financial Advisors, believes that smooth vaccine deployment is needed to open consumer wallets, a key factor in the rapid return to economic health this year. ..

surely, Consumer sentiment What was tracked by the University of Michigan dropped slightly to 79 readings in January and remains depressed compared to pre-pandemic highs.

Nonetheless, many hope that the recent temporary suspension of vaccine deployment will not last long as President Joe Biden’s administration resolves logistical support issues with further approval.

Gregory Dako, chief US economist at Oxford Economics, said accelerated deployment could in turn unleash the flow of consumer spending and boost growth.

Johnson and Johnson
JNJ,
-3.56%

Said Late trials of a single-dose COVID-19 vaccine have shown to be largely effective in preventing moderate to severe illness.And Novavax
NVAX,
+ 64.87%

Early trials of the vaccine candidate said it was 89% effective.

Next week, investors will face less crowded, but relatively busy week corporate earnings announcements.Amazon
AMZN,
-0.97%
,
Alphabet
Google,
-1.39%
,
Pfizer
PFE,
+ 0.11%
,
Bristol Myers Squibb
BMY,
-1.38%

And Merck
MRK,
-1.09%

One of the companies that reports results.

A series of first-tier economic data also attracts attention. The January Services and Manufacturing ISM Survey is scheduled for next week, along with the US Department of Labor’s January Employment Report.

“Bumpia” Pass from Heterogeneous Vaccine Deployment Alert to Normal US Equity Market Bull

http://www.marketwatch.com/news/story.asp?guid=%7B21005575-02D4-D4B5-4572-D23E0E390421%7D&siteid=rss&rss=1 “Bumpia” Pass from Heterogeneous Vaccine Deployment Alert to Normal US Equity Market Bull

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