Risk assets had a very good day on Monday, but U.S. stock performance was mixed after news that a COVID-19 vaccine from Pfizer and BioNTech could be distributed to millions of people before the end of the month.
Why it matters: Beyond just stocks, Monday's market moves clearly reflected investor enthusiasm and a market pricing in a return to pre-pandemic life that will benefit risk at the expense of safety.
By the numbers: Oil prices jumped and broad stock market indexes around the world rose after news about the possible vaccine.
- MSCI’s index of global stocks gained 1.3%.
- Emerging market stocks rose 1.4%.
- The pan-European STOXX 600 index rose 4%.
- Oil prices posted their biggest daily percentage gain in more than five months, with Brent crude gaining 7.5% to close above $42 a barrel and U.S. WTI crude rose by nearly 8.5%, above $40 a barrel.
On the other side: Safe-haven assets were sold broadly, with 30-year Treasury yields rising by the most since March and the Treasury yield curve hitting its steepest level since March.
- The Japanese yen fell against the U.S. dollar by 2%.
- Gold, which had been moving largely in concert with broader equities prices in recent weeks, fell by almost 5% to its lowest since mid-July.
Between the lines: The Dow rose by nearly 3%, more than doubling the return of the S&P 500 (up 1.2%), while the tech-heavy Nasdaq fell by 1.5%.
- The 30-company Dow was boosted by Disney, Boeing and Chevron, which each gained more than 11% on the day. The tech-heavy Nasdaq had its worst day since Oct. 30 and was led downward by companies like Netflix, which fell by around 9%, as well as Zoom and Peloton, which both declined by almost twice that much on the day.
- Value and cyclical stocks outperformed growth and momentum stocks by the most in a single session since 2000 by some measures, according to FactSet.