From wsj.com’s “Global Stocks Rally on Potential Coronavirus Treatment” posted early Monday:
Global stocks and U.S. equity futures advanced Monday, putting the S&P 500 index on track to hit an all-time high, as investors’ optimism about a potential treatment for the coronavirus buoyed markets.
Futures tied to the S&P 500 rose 0.6%, suggesting that the U.S. stocks benchmark may open higher after closing at a record on Friday. Overseas, the pan-continental Stoxx Europe 600 climbed 1.4%, while most major Asian markets closed higher.
The Food and Drug Administration on Sunday said it authorized use of convalescent plasma, the antibody-rich blood component taken from recovered Covid-19 patients, for the treatment of serious coronavirus cases. The emergency-use authorization falls short of a full approval, FDA Commissioner Stephen Hahn said, adding that the agency will evaluate more evidence.
“Any news that’s positive on the virus is going to drive markets higher,” said Seema Shah, chief strategist at Principal Global Investors. “However, any news on a vaccine or treatment has to be treated with skepticism, given the process it has to go through before it’s used by the general population.”
My take: A little too good to be true.
See also: Knock, knock, knockin’ on $500’s door