US Stocks Rally on Positive Early Trial Vaccine Results

Equities

US stocks rallied on Tuesday after Moderna said that it’s vaccine produced antibodies in all 45 patients, an early stage human trial. Even though more than a third of U.S states reported highs in daily new cases, with Florida now being the fastest growing outbreak followed by Arizona, Louisiana, and South Carolina. Investors are now hopeful with the new vaccine trial results, disregarding any news from the coronavirus. With that being said, the Dow Jones Industrial Average futures jumped 265 points to 26700, the S&P500 futures up to 3207 from 3183, and Nasdaq futures back up to 10705.

USD

The dollar index, which measures the greenback against a basket of major currencies, dropped back down to 96.06, indicating risk-on sentiment. Dismissing the rising coronavirus cases and US-China tensions over Hong Kong as the markets are overwhelmed with hopes for a faster economic recovery due to Moderna’s vaccine results. The EURUSD on highs of $1.1420 the GBPUSD regained footing to $1.2590, and the risk-sensitive AUDUSD up to $0.7010.

Metals

Gold prices tested support near the $1,790 level only to find its way back up to $1,810, stuck in a range, either being caught higher due to soaring coronavirus cases and U.S-China tensions and lower due to risk-on sentiment from the vaccine’s positive results. On the other hand, the price of a silver ounce rising to $19.30 nearing September highs, and Palladium futures dropped to $1990.

Oil

Oil prices rose after a sharp drop in U.S. crude inventories of 8.3 million barrels in the week to July 10, beating analyst’s expectations for a decline of 2.1 million barrels. Moreover, OPEC July monthly report indicates an increase in oil demand in 2020 which is revised up by 0.1 million barrels per day from the previous month’s assessment. The West Texas Intermediate crude August delivery back up to $40.52, and Brent blend September delivery up at $43.10.

Major Economic Events

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