Stocks are set for a sharp rally on Monday after the Trump administration approved a potential Covid-19 treatment. With Wall Street in the green, both the S&P 500 and the Nasdaq Composite could reach new all-time highs.
The US Food and Drug Administration on Sunday issued an emergency use authorization for convalescent plasma — blood plasma taken from coronavirus survivors — to treat the virus, saying the "known and potential benefits of the product outweigh the known and potential risks of the product."
Also boosting stocks, the Trump administration is reportedly considering fast-tracking an AstraZeneca Covid-19 vaccine prior to US election, according to the Financial Times. Although far from a certainty, investors were hopeful that a vaccine could come faster than many had expected. AstraZeneca's stock rose 3.6% in premarket trading.
After months of investors saying that only a vaccine or an effective treatment solution for the virus would help the economic recovery along, it's not surprising that the news of the plasma treatment is making waves.
Futures for all three main indexes are sharply higher:
- Dow futures were up 1%, or about 280 points
- Futures for the S&P 500 rose 0.9%
- Nasdaq futures jumped 1.1% higher
Both the S&P 500 and the Nasdaq finished Friday at record levels, so any incremental increase during this session will push them to new all-time highs. The Dow, meanwhile, remains more than 5% below its February record level as of Friday's close.