ETF Strategies To Gain From Vaccine Hopes & Biden's Transition

Wall Street is showing unprecedented optimism as positive news regarding coronavirus vaccines are pouring in. The 30-stock Dow Jones Industrial Average crossed the 30,000-mark for the first time on Nov 24. Meanwhile, the S&P 500 rose 1.6% and saw a record close. Also, the Nasdaq Composite gained 1.3% on the same day. The small-cap Russell 2000 also touched an all-time high, rising 1.9%.

Notably, the Dow Jones has risen more than 13% for November, registering its biggest monthly gain since 1987. Moreover, the S&P 500 and Nasdaq rose 11.2% and 10.3%, respectively, in the same month. This will be their best monthly gain since April.

Another factor that has been well-received by investors is decreasing political uncertainty as the Trump administration is allowing federal resources to be used for President-elect Joe Biden’s transition into office, which was informed about by General Services Administration chief Emily Murphy, per a CNBC article. Moreover, Biden’s plan to nominate previous Federal Reserve Chair Janet Yellen for Treasury secretary has also led this optimism wave. Going by a CNBC article, Yellen is known for an impressive run during her tenure as Fed chair from 2014 to 2018. During that period, the S&P 500 gained about 60% along with low rates.

There has also been an influx of positive coronavirus treatment news. Regeneron Pharmaceuticals, Inc. (REGN) has announced that the FDA has given Emergency Use Authorization (EUA) to its antibody cocktail, casirivimab and imdevimab administered together (formerly known as REGN-COV2 or REGEN-COV2), a therapy currently being investigated for use in COVID-19. Eli Lilly and Company (LLY) and partner Incyte also recently announced that the FDA has issued an EUA for the distribution and emergency use of baricitinib to be used in combination with remdesivir in hospitalized adult and pediatric patients, two years of age or older with suspected or laboratory-confirmed COVID-19, who require supplemental oxygen, invasive mechanical ventilation, or extracorporeal membrane oxygenation.

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