The United States Stock Market is set to receive a Short Term and Long Term Boost with COVID Aid and Vaccinations
The Short Term Boost
U.S. congressional leaders announced that they have made progress in moving forward on an aid package after a months-long delay which has seen both sides holding firm on certain aspects of the bill. A new relief bill would be a welcome boost to the U.S economy, especially since retail sales fell 1.1% month over month which was greater than the expected .3%. The agreement would also include a funding bill that would avert a new government shutdown, which would have been disastrous amid the roll-out of the new vaccines.
“We are getting closer and closer, ” Republican Majority Leader Mitch McConnell told reporters. “I am optimistic that we are going to be able to complete an understanding sometime soon.” Some reports say as soon as early next week.
Details of the bill area still being hammered out but it is expected to be less than the $3 trillion coronavirus aid package that was delivered in the Spring. A bipartisan group of lawmakers unveiled a $908 billion COVID-19 package this week but elements are still being scrutinized.
The Long Term Boost
With Pfizer’s COVID vaccine currently being deployed throughout the United States, more good news was received on Tuesday morning. The Food and Drug Administration released detailed analysis of Moderna’s COVID 19 vaccine that would authorize the emergency use of the vaccine.
The agency found that the vaccine has a “favorable safety profile” and that “there were no specific safety concerns identified.” Serious reactions were rare and common side effects such as pain at site of injection, fatigue and headaches were reported in trial volunteers.
The FDA also confirmed the effectiveness of the vaccine at an 94% overall effectiveness rate.
The report is welcome news, not only to the millions of Americans at risk of infection but also for the U.S. economy and stock market. The stock market has already been on a steady rise since its correction in March due to the virus. However, stocks such as industrial and retail could see particularly big boost from a vaccinated, American public.