Moderna and Pfizer stocks rise amid new coronavirus news
Moderna and Pfizer shares climb amid renewed coronavirus concerns
Concerns about a newly identified coronavirus strain in China drove vaccine-maker stocks higher and travel-related stocks lower on Friday.
Shares of Moderna (MRNA) rose more than 5%, making it the biggest gainer on the S&P 500, while Pfizer (PFE) and Novavax (NVAX) also posted notable gains. At the same time, Norwegian Cruise Lines (NCLH) fell more than 6%, ranking among the index’s worst performers, reports Investopedia.
The market’s reaction followed reports from the South China Morning Post, Daily Mail, and other outlets highlighting a scientific journal article published by Chinese researchers. The study claimed to have identified a bat coronavirus that may have the ability to jump from animals to humans — a characteristic that mirrors the origins of the COVID-19 pandemic.
Expert Opinions and Market Context
Despite the sharp moves in stock prices, health experts have cautioned against overreacting. Former FDA Commissioner Scott Gottlieb told CNBC on Friday that discoveries of new viruses like this one are “pretty routine” and noted that the risk of an imminent outbreak remains “flimsy”.
“While it’s important to monitor new viruses, we find these things fairly often,” Gottlieb said, suggesting that the market’s response may have been premature or exaggerated.
The market’s movements also reflected broader economic pressures. Reports that the U.S. Department of Justice (DOJ) is investigating UnitedHealth Group (UNH) led to declines in health insurance stocks, while disappointing earnings results pulled tech shares lower.
Cruise stocks faced additional headwinds earlier this week following comments from U.S. Commerce Secretary Howard Lutnick, who indicated that cruise companies could face new U.S. taxes.
As investors balance evolving health concerns with economic uncertainty, market volatility remains elevated. Vaccine makers could continue to benefit from renewed public health fears, while travel and leisure companies may face further setbacks amid policy risks and potential health-related disruptions.
Reminder, Goldman Sachs has increased its 12-month target price for Chinese stocks, citing the potential of artificial intelligence (AI) adoption to significantly boost corporate earnings and attract as much as $200 billion in capital inflows.
