This week, the world was surprised by the latest announcement on Moderna’s human trials with Covid-19 vaccines that produced positive results. How does this news affect the market situation?
On Monday, a leading biotechnology company in United States (US), Moderna Inc announced their vaccine trials to a small group of healthy volunteers have produced promising results.
Eight participants were reported to produce protective antibodies to Covid-19. The findings are ‘significant’ but further tests still need to be performed.
An analysis of the response in the eight individuals showed that those who received a 100 microgram dose and people who received a 25 microgram dose had levels of protective antibodies to fend of the virus.
What Happened to Markets after Moderna’s Announcement
- Moderna shares jumped by 20%.
- The news pushed U.S. stock indexes through important psychological resistance levels as the S&P 500 rose by more than 3%.
- Asian stocks rose on Tuesday after Moderna reported promising results from the first human trials of its Covid-19 vaccine.
- The good news also sent some major airline stocks like American Airlines up to 9%, Delta Air Lines and Southwest Airlines stock up about 13%, and United Airlines stock up 21%. As a result, their combined market caps rose by about 14% to $41 billion.
- The company announced late Monday it would price an offering of 17.6 million new shares at $76 each.