An announcement by Moderna Inc. that it has seen positive results in its clinical trials of a potential coronavirus vaccine has pushed the DJIA up over 600 points in overnight trading. Treasury bonds are seeing a moderate sell-off that has pushed the Ten-Year’s yield up to around 66 basis points.
Meanwhile, WTI has rallied over $2.50/barrel to almost $32 as gold enjoys a $10 rally to around $1,754/oz. Markets may also be buoyed by comments over the weekend from Fed Chairman Jerome Powell that the Fed has more ammunition as its disposal as recovery efforts progress. Mr. Powell also expressed the need for more fiscal spending to prevent massive business failures. The Chairman will appear before Congress this week to present testimony regarding economic and monetary conditions.