Although the vaccine is not set to be widely administered soon, Pfizer said it plans to seek emergency use authorization from the US Food and Drug Administration soon after volunteers have been monitored for two months following their second dose of the vaccine.
The drugmaker’s CEO Albert Bourla said Monday that the company expects to have 1.3 billion doses of the vaccine globally next year, on top of 50 million doses this year. Two separate production lines, one in the United States and one in Europe, will make the vaccine.
The vaccine news was good for pharmaceutical stocks, including Dow components Merck and Johnson & Johnson, both of which were higher before the bell.
Oil, which had been plunging as the economy took a turn for the worse, fared better Monday morning. US oil prices were up more than 10%.
On the other end of the spectrum, stocks that benefited from the stay-at-home work culture since the spring tumbled.
Betting on Biden
Even before Pfizer’s vaccine news, stock futures had been pointing to a higher open. With the uncertainty surrounding last week’s US presidential election mostly in the rearview mirror, investors have been focusing on the positive effects of a Biden presidency: The first reaction to Biden’s official projection as the winner over the weekend was a positive one.
The market also rallied last week, as the market predicted Joe Biden to win the contest.
Investors are hoping that a Democratic White House paired with a Republican Senate will lead to more moderate policy — and lesser increases in taxes and regulation — while still getting a new stimulus deal on the table quickly.
Although President Donald Trump continues his legal fight and unsubstantiated claims of election fraud — and the fate of the Senate remains up in the air — Wall Street was pleased that a great deal of uncertainty is out of the way.
— CNN Health’s Nadia Kounang contributed to this report