Skip to main content
The Globe and Mail
Support Quality Journalism.
The Globe and Mail
First Access to Latest
Investment News
Collection of curated
e-books and guides
Inform your decisions via
Globe Investor Tools
Just$1.99
per week
for first 24 weeks

Enjoy unlimited digital access
Enjoy Unlimited Digital Access
Get full access to globeandmail.com
Just $1.99 per week for the first 24 weeks
Just $1.99 per week for the first 24 weeks
var select={root:".js-sub-pencil",control:".js-sub-pencil-control",open:"o-sub-pencil--open",closed:"o-sub-pencil--closed"},dom={},allowExpand=!0;function pencilInit(o){var e=arguments.length>1&&void 0!==arguments[1]&&arguments[1];select.root=o,dom.root=document.querySelector(select.root),dom.root&&(dom.control=document.querySelector(select.control),dom.control.addEventListener("click",onToggleClicked),setPanelState(e),window.addEventListener("scroll",onWindowScroll),dom.root.removeAttribute("hidden"))}function isPanelOpen(){return dom.root.classList.contains(select.open)}function setPanelState(o){dom.root.classList[o?"add":"remove"](select.open),dom.root.classList[o?"remove":"add"](select.closed),dom.control.setAttribute("aria-expanded",o)}function onToggleClicked(){var l=!isPanelOpen();setPanelState(l)}function onWindowScroll(){window.requestAnimationFrame(function() {var l=isPanelOpen(),n=0===(document.body.scrollTop||document.documentElement.scrollTop);n||l||!allowExpand?n&&l&&(allowExpand=!0,setPanelState(!1)):(allowExpand=!1,setPanelState(!0))});}pencilInit(".js-sub-pencil",!1); // via darwin-bg var slideIndex = 0; carousel(); function carousel() { var i; var x = document.getElementsByClassName("subs_valueprop"); for (i = 0; i < x.length; i++) { x[i].style.display = "none"; } slideIndex++; if (slideIndex> x.length) { slideIndex = 1; } x[slideIndex - 1].style.display = "block"; setTimeout(carousel, 2500); } //

An electronic billboard in Times Square announces 'stocks soar on vaccine hopes' on Nov. 9, 2020 in New York City.

David Dee Delgado/Getty Images

The stock market raced toward a postpandemic existence on Monday when long-struggling airlines, banks, energy producers and theatre chains surged on promising test results for a COVID-19 vaccine that could be cleared for widespread use later this month.

The S&P 500 rose 1.2 per cent, continuing a powerful rally that began last week after the U.S. presidential election. The index touched a record intraday high soon after the start of trading, but lost momentum as technology stocks slumped toward the close.

Canada’s S&P/TSX Composite Index also ended the day 1.2 per cent higher, bringing it about level where it was a month ago.

Story continues below advertisement

On the weekend, Joe Biden emerged as the victor in the U.S. presidential contest and he delivered a speech on Saturday night that reinforced his centrist political leanings, which may have won over Wall Street.

But some of the most spectacular gains on Monday came from beaten-up sectors that stand to benefit most from a vaccine and a return to the economic normalcy of travel and leisure, suggesting that U.S. politics took a backseat to medical science.

Pfizer Inc. and its German partner BioNTech SE announced on Monday that results from its large-scale clinical vaccine trial indicate a 90-per-cent success rate in combatting the virus, without serious safety concerns.

The results exceeded scientists’ expectations for vaccine effectiveness and suggested that the drug makers could seek U.S. authorization for emergency use of the vaccine later this month.

“I’m near ecstatic,” Bill Gruber, one of Pfizer’s top vaccine scientists, told Reuters in an interview. “This is a great day for public health and for the potential to get us all out of the circumstances we’re now in.”

Pfizer shares rose 7.7 per cent. But the news resonated well beyond the pharmaceutical sector in a rally that resembled relief after 10 months of pandemic weariness and economic strain.

Major benchmarks in Britain and Germany climbed 4.7 per cent and 4.9 per cent, respectively.

Story continues below advertisement

The bond market also responded in dramatic fashion, as yields surged to their highest levels in months in anticipation of stronger economic activity. The yield on the 10-year U.S. Treasury bond jumped to 0.929 per cent, up 11.4 basis points (there are 100 basis points in a percentage point).

“I think this really takes two big uncertainties – the health impact of COVID and the economic impact of COVID – and creates a pathway now ... to the restoration of our health and the economy,” said Jack Ablin, chief investment officer at Cresset Capital Management.

Investors bet on a return to a lifestyle that existed before the COVID-19 pandemic arrived on North American shores early this year.

Air Canada rose 28.6 per cent, theatre chain Cineplex Inc. gained 31.8 per cent and mall-operator RioCan Real Estate Investment Trust advanced 12.4 per cent, to name just three Canadian standouts that had been struggling in recent months even as the broader market recovered.

In the United States, JPMorgan Chase & Co. rose 13.5 per cent, Delta Air Lines Inc. was up 17 per cent and cruise operator Carnival Corp. surged 39.3 per cent, suggesting that investors are turning upbeat about key sectors that were dismissed as high-risk during the darkest days of the pandemic.

“Most ‘risky’ assets have rallied sharply since the U.S. election last week, and today’s news about progress towards a vaccine for COVID-19 has given them a further boost,” Jonas Goltermann, senior markets economist at Capital Economics, said in a note.

Story continues below advertisement

Energy stocks also rallied, after the price of West Texas Intermediate crude, a U.S. oil benchmark, rose 7.7 per cent to US$40 a barrel. (The WTI futures contract for December was up 8.5 per cent to settle at US$40.29.) The gain underpinned a rally in the Canadian energy sector, which saw Suncor Energy Inc. jump 24.7 per cent and Canadian Natural Resources Ltd. gain 22.6 per cent.

Monday’s rally came with casualties, though – particularly technology stocks that were embraced as safe bets during lockdowns, slow economic growth and ultralow interest rates.

Netflix Inc. fell 8.6 per cent, Amazon.com Inc. declined 5.1 per cent and Canada’s Shopify Inc. lost 13.8 per cent. The tech-heavy Nasdaq Composite Index was off 1.5 per cent.

Gold, typically seen as a haven investment during tumultuous times, fell 4.4 per cent to US$1,865.40 an ounce, and dragged down gold producers. (December gold futures fell almost 5 per cent, settling at US$1,854.40.) Shares of Barrick Gold Corp. lost 7.4 per cent.

Tobias Levkovich, chief U.S. equity strategist at Citigroup, expects that typical havens – including the U.S. dollar, precious metals and even U.S. stock indexes (which have been outperforming global indexes this year) – could underperform as the world returns to normal.

“While it may still be six months or so before we envision enough people getting inoculated, it is likely that assets reflect the changing dynamics in advance," Mr. Levkovich said in a note.

Story continues below advertisement

With files from Reuters

Be smart with your money. Get the latest investing insights delivered right to your inbox three times a week, with the Globe Investor newsletter. Sign up today.

Your Globe

Build your personal news feed

  1. Follow topics and authors relevant to your reading interests.
  2. Check your Following feed daily, and never miss an article. Access your Following feed from your account menu at the top right corner of every page.

Follow the author of this article:

Follow topics related to this article:

View more suggestions in Following Read more about following topics and authors
Coronavirus information
Coronavirus information
The Zero Canada Project provides resources to help you manage your health, your finances and your family life as Canada reopens.
Visit the hub
Report an error Editorial code of conduct
Due to technical reasons, we have temporarily removed commenting from our articles. We hope to have this fixed soon. Thank you for your patience. If you are looking to give feedback on our new site, please send it along to feedback@globeandmail.com. If you want to write a letter to the editor, please forward to letters@globeandmail.com.

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff. Non-subscribers can read and sort comments but will not be able to engage with them in any way. Click here to subscribe.

If you would like to write a letter to the editor, please forward it to letters@globeandmail.com. Readers can also interact with The Globe on Facebook and Twitter .

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff. Non-subscribers can read and sort comments but will not be able to engage with them in any way. Click here to subscribe.

If you would like to write a letter to the editor, please forward it to letters@globeandmail.com. Readers can also interact with The Globe on Facebook and Twitter .

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff.

We aim to create a safe and valuable space for discussion and debate. That means:

  • Treat others as you wish to be treated
  • Criticize ideas, not people
  • Stay on topic
  • Avoid the use of toxic and offensive language
  • Flag bad behaviour

If you do not see your comment posted immediately, it is being reviewed by the moderation team and may appear shortly, generally within an hour.

We aim to have all comments reviewed in a timely manner.

Comments that violate our community guidelines will not be posted.

Read our community guidelines here

Discussion loading ...

To view this site properly, enable cookies in your browser. Read our privacy policy to learn more.
How to enable cookies