“A great day for science and humanity” — Coronavirus vaccine sends markets flying

The long-awaited announcement finally came out: There is an effective Coronavirus vaccine. After a crippling pandemic, which turned 2020 into one of the most hectic years in markets to date, representatives of all of the industries that suffered from the Coronavirus’ effects may breathe a sigh of relief.

The news broke on November 9th, 2020: Pfizer Chairman and CEO Dr. Albert Bourla announced that the latest human trial results of the COVID-19 vaccine, developed by his company and the German firm BioNTech, show that the vaccine is 90% effective. According to Bourla, the vaccine is administered in two doses, over a 28-day period.

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“[This is] a great day for science and humanity,” Bourla said in a statement. “The first set of results from our Phase 3 COVID-19 vaccine trial provide the initial evidence of our vaccine’s ability to prevent COVID-19. With today’s news, we are a significant step closer to providing people around the world with a much-needed breakthrough to help bring an end to this global health crisis.”

Markets Pop on the News

Immediately after the news broke, the DJ30 index surged to an all-time high, accompanied by oil, which skyrocketed more than 8% (and continued to climb at the time of writing). This comes as no surprise, as representatives of numerous industries, market segments and companies were holding their breath in anticipation of this vaccine.

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Coronavirus was the most influential factor in markets in 2020, causing an unprecedented global crisis. The virus, which was declared a global pandemic by the World Health Organization on March 11th, grounded the airline industry and cruise lines, caused restaurants and hotels to work under strict restrictions, or shut down completely, and forced numerous offices around the world to switch to remote work.

All of the organisations, companies and individuals whose livelihood was crippled or killed by the restrictions created in an attempt to contain the virus, were eagerly awaiting the news that broke today. Alongside the livelihood of the individuals affected by the pandemic, people around the world who were longing to travel, or simply sit with their families and friends for a drink, will soon be able to enjoy these once trivial activities again.

The Recovery is Coming

There is no doubt that the industries that were the hardest hit were travel and leisure. Airlines saw their stocks tumble, cruise lines went bankrupt and hospitality giants, such as Airbnb, had to massively change their plans for 2020. Now, this is all about to change.

If we will have a readily available vaccine soon, this will mean the rekindling of practices halted in 2020, such as international travel, hotel stays, car rentals, and many other activities that were significantly changed, or cancelled altogether, due to the virus. This is already leading to a tremendous boost in the stocks of companies operating in these sectors, and could be the first step towards global economic recovery.

Sporting events, such as the postponed 2020 Tokyo Olympics, will take place a year later, and perhaps be accompanied by a wave of tourists that will use the international sports celebration as an excuse to make up for the long months during which they were house-ridden.

It is impossible to name all of the fields, industries and individuals that were affected by the global pandemic. However, this piece of news could mean something that everyone was hoping for: 2021 will be a year of recovery, both economically and otherwise.

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