Tech Stocks Look Ready To Lead The Market Higher

Russia Announces That Its Coronavirus Vaccine Is 92% Effective

On Monday, stocks rallied after Pfizer and BioNTech announced that their coronavirus vaccine was 90% effective. Today, Russia announced that its Sputnik V vaccine was 92% effective based on the data from 16,000 people who participated in the trials.

While the investment world has not put too much weight to the Russian vaccine since Russia decided to approve it for use before completing the final, large-scale trials, the new data on the vaccine appears to help stocks.

In addition, Pfizer/BioNTech vaccine is destined to be a shot for the most developed nations as it has to be stored at -70 degrees Celsius (-94 degrees Fahrenheit) which cuts out poorer countries that will not have access to the equipment for transportation and storage.

In this light, the world clearly needs as many vaccines as it can get, so traders should expect positive reaction from stocks on any positive vaccine news from around the world.

Not surprisingly, S&P 500 futures are gaining ground in premarket trading as the success of another vaccine increases the world’s chances to get back to normal life within a reasonable timeframe.

In addition, tech stocks look ready to rebound from the recent sell-off, and Nasdaq futures are gaining more than 1% ahead of the market open.

Oil Moves Past The $42 Level As Crude Inventories Decline

Oil is one of the biggest beneficiaries of vaccine news since demand for oil relies heavily on transportation which will remain under pressure until the world contains the pandemic.

In addition to the recent bullish news on the vaccine front, the latest API Crude Oil Stock Change report indicated that crude inventories decreased by 5.1 million barrels, which is another bullish catalyst for oil.

As a result, many oil-related stocks are gaining ground in premarket trading and look ready to continue their strong rebound from recent lows.

Yield On 10-Year U.S. Government Bonds Gets Close To 1.00%

On November 5, the yield on 10-year U.S. government bonds touched a low of 0.72% and then rallied to 0.98%, providing support to the U.S. dollar.

Today, the U.S. bond market is closed in observance of the Veterans Day, but it looks like the yield on 10-year bonds may soon get above 1.00% as the U.S. dollar continues to rebound against a broad basket of currencies.

The major move in the U.S. bond market is especially important for investors in the precious metals space since gold and silver do not pay interest and often find themselves under pressure during a period of rising bond yields.

For a look at all of today’s economic events, check out our economic calendar.