Gains at the opening of Wall Street driven by the hope of a treatment against the Covid-19

  •   01/05/2020 - 11h05
  •   DEHOUI Lionel

While the world seems disoriented by the covid-19 pandemic, the manufacture of a molecule to counter the virus raises hopes. This is happening in the United States, where the death toll is well over 60,000. But as soon as a certain treatment for covid-19 becomes available, the U.S. financial market is influenced by it. This Wednesday, the values posted by Wall Street are experiencing a sharp rise at the opening of the session. Indeed, the announcements made by the American group Gilead Sciences on its molecular design propelled the values. The biotech research specialist reported encouraging results about its treatment for Covid-19. Immediately, the repercussions are felt on the various American indices. These thus came up this Wednesday before 14:00 GMT.

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Gains at the opening of Wall Street driven by the hope of a treatment against the Covid-19
Image copyright: krispdk - Flickr

U.S. indexes

This Wednesday, it was still ringing at 13:45 GMT when the Dow Jones, which is the leading U.S. index, climbed 1.73% to 24,518.96 points. Similarly, the representative index of the 500 largest companies listed on Wall Street, the Standard & Poors (S&P 500) gained 1.94 to 2,918.92 points. In addition, the Nasdaq with its strong technological colouring rose significantly to 8,805.78 points, an increase of 2.30%. It should be remembered that these indices were unfavourable the day before.

Note: Indeed, the day before (Tuesday), the New York Stock Exchange finished in negative values even though the session was in a rollercoaster ride. The latter saw a string of mixed results from several companies. The Dow Jones fell 0.13% on Tuesday while the Nasdaq index lost 1.40%.

 

Gilead Sciences' statement and its effects

It should be noted that Gilead Sciences is up 3.11%. But according to him, the study carried out on a trial of its antiviral drug Covid-19 is leading to positive data. The work is being conducted by the National Institute of Allergy and Infectious Diseases. The biotech group recalls all the same that its molecule redesivir had not received the approval nor the aggregation of any state structure in the world.

It did not guarantee the safety or efficacy in the treatment of Covid-19. However, the announcements are already very good news according to Patrick O'Hare of Briefing. Indeed, he affirms that the results constitute real reasons to hope for the advent of a treatment against the virus in the near future. He speaks based on patients cured within 10 days of the first signs. The U.S. Department of Commerce has also pronounced on the situation.

Information: According to the department, these possible medical advances managed to cover the fall of the American GDP. Indeed, US GDP fell by 4.8% in the first quarter compared to its 2019 level in Q1. The sole cause of this decline remains the cessation of economic activity in the United States. This decline comes at the end of a decade of growth in the world's leading powerhouse. The second quarter is shaping up with significant losses.

 

Boeing and the US Treasury

Indeed, the U.S. Treasury recorded a decline in its estimated bills of 0.5938%. On Tuesday, the 10-year rate was 0.6129% on the bond market. These losses are highlighted by the results of some companies like Boeing.

In the first quarter, the aircraft manufacturer Boeing recorded a loss of $641 million. As for its sales, it lost 26%. The group will reduce its workforce by 10 %, but also its production of long-haul aircraft.