The S&P 500, Dow Jones, and Nasdaq were all up early Tuesday morning. This recent uptick is good news considering stocks were down across the board on Monday following a rapid spread of coronavirus cases outside of China. Tech giants Apple, Amazon, Tesla, and Microsoft were all down and dragged the markets with them to levels below their 50-day moving averages. Luckily, these tech giants seem to have recovered in Tuesday’s early morning trade.
I had previously written there was a slowing in the spread of coronavirus in China, but this recent surge in countries outside of China was not foreseen. The virus has started to spread to countries like Iran, South Korea and Ital, with South Korea reporting 977 new cases. Total cases have now surpassed 80,000 accounting for about 2,700 deaths, and these are only reported cases and deaths, the actual total could be higher.
Pharmaceutical company, Moderna released the news that is has created a coronavirus vaccine and it is ready for human trial. Trials may begin as early as April, but still wouldn’t have much impact in the short term. If the trials are successful Moderna will still have to conduct a second, larger trial. Even if everything goes right, the vaccine won’t be on the market until next year. So, in the short-term we are stuck running damage control.