The devastating coronavirus crash is clearly etched in the minds of every single investor. Markets all around the world plummeted in a few moments, and recovery seemed almost impossible.
Even the USA’s most prominent market indices, Dow Jones, Nasdaq, and S&P500, lost approximately 30 percent of their value during the pandemic scare.
Although those days have passed and the markets are recovering, it showed a new change of investor sentiment as people wished to return to normalcy.
How COVID-19 Silently Changed Investor Sentiments
The coronavirus crash dismantled all major economies, which shook the world market. However, it also switched the mentality of people, and most people were bearish on investment.
The most striking thing was the events that took place in the US due to COVID-19 – from the lockdown to the protests – also hurt the US economy.
Travel restrictions caused major airliners to lose market capital, and the retail industry precipitated due to the scare. Almost every industry that required human resources to operate suffered from dwindling share values.
Many traditional investors were fooled by the US market’s tenacity and stayed put on major airlines and local retail businesses, thereby incurring major losses.
People who opted for Stock market API free found a more convenient way to respond to the changing market. Plus, some companies such as Tesla, Disney, Netflix, and Amazon came on top of the crisis.
The mentality of the ordinary investor had switched to stocks that work on the stay-at-home mentality. Other than few stocks, almost every equity, commodity, and derivatives were falling left and right.
How The Investor Sentiment Recovered In The Market
The government and the Fed’s job was now to bring back the investor sentiment and trust in the stock market. Hence, they applied some quick fixes to the stock market that was out of shape.
Almost every country had their version of a growth stimulus package for small businesses and citizens since many people lost their jobs. However, these were only temporary solutions to the problem.
Moreover, as many lives were affected or lost to the disease, there was a rising sentiment to value and protect human lives.
With an increased pressure for normalcy to return, people were willing to invest in the hopes of a better future. The whole world started working on vaccines to curb the disease and protect humanity.
Vaccine Companies And The Rush For A Cure
As time passed, there was a heavy investment in the pharma and healthcare sector. Every healthcare company wanted to be the first one to launch the vaccine.
The pharma sector drove with the news of new vaccine trials every week. Tests conducted by different companies kept the stock markets upward and increasing in a cyclical order.
The test kits set an uptrend, and the pharma sector boomed. It was now clear that the healthcare and pharma sector could restore the stock market’s previous glory.
Here are a few companies with their version of healthcare test kits for COVID-19 that profited during the pandemic:
- Astra Zeneca launched the first test kits for the public and instantly saw an uptrend. It rose over 50 percent in value at the NASDAQ stock exchange from April to August of 2020.
- The protective kits from Eli Lily helped the company rise from under $119 per share in March 2020 to approximately $170 per share during August 2020 in the New York Stock Exchange.
Johnson and Johnson, Pfizer, Moderna, and many other companies brought up the hopes of beating the virus. Over time, these events managed to build trust in the US market.
The sharp decline in the previous months flattened over time, and investor confidence was rebuilt slowly. Additionally, decreasing interest rates and stimulus checks infused greater stability in the market.
The Recovery Phase
After the testing kits and the protective kits helped rally investor confidence, the vaccine helped swing the tide to a significant uptrend.
The stock market soon started pushing back from a bear to a bull and has been raging ever since. Here are some COVID-19 vaccine trends that spurred huge investment and galvanized the stock market:
BioNTech And Pfizer’s Successful Vaccine
BioNTech and Pfizer jointly develop a vaccine with an over 90 percent rate of success. The vaccine is still waiting for USFDA approval but has cleared tests in the UK and Bahrain.
The BioNTech stock, which traded at less than USD 30 in February, is now trading at USD 120 as of December 2020. It means that the share price has extended over 300 percent after the great coronavirus crash.
Additionally, the announcement has spurred growth in all stocks in the US stock market.
Meanwhile, Pfizer increased its stock value from approximately USD 30 to 40 USD over this time, a 30 per cent recovery after the pandemic fall.
Shortly after Pfizer and BioNTech launched their vaccine, Pfizer went back on its promises of delivering 50 million vaccines worldwide by the yearend.
However, it did not sit well with investors, and the stock fell a bit. The company is also seeking emergency approval in the elusive Indian market of billions to bolster its ground.
Moderna Launches A Coronavirus Vaccine
Moderna joined the coronavirus vaccine race, claiming that it was better than the Pfizer vaccine in hours of sustainability and success rate.
It has prompted the share price to grow from USD 19 in February 2020 to USD 150 in today’s date, amounting to over 600 per cent growth.
Additionally, the Dow Jones has also risen to 30000 points from the news announcement.
President Donald Trump Affected By COVID-19
The entire world market went down in a single shot as the US President went into the infected state. It clearly showed the impact of COVID-19 and the value of vaccines in the current stock market.
The shock of the pandemic killed the public’s appetite for investing in the world market. However, investors are bouncing back, and stocks are getting back on their feet.
Many people have switched to Quant trading to stay alert and prevent running into a similar disaster.
As the world slowly recovers from the hellish nightmare of the coronavirus crash, COVID-19 vaccines are taking centre stage in the movement.