US stocks erased last week’s losses on Monday. Markets were flooded with hopes of an early coronavirus vaccine, as well as expectations of several primary share subscriptions.
The Dow Jones index strengthened by more than one percent during Monday, which is about 300 points in absolute numbers. For a short time, it even got above 28,000 points, although in the middle of last week it was below 27.5 thousand. There are several reasons for the recovery in the markets.
One is the resumption of coronavirus vaccine candidate testing from the workshop of AstraZeneca Pharmaceutical and Oxford University. Clinical trials were suspended because one of the volunteers’ health deteriorated after the vaccine. The resumption of testing has given the markets optimism, which has been reflected in rising demand for shares, and therefore their prices.
Another factor is the growing activity associated with several planned primary share offers. Among the companies that want to subscribe for new shares is the cloud company Snowflake. It wants to claim more than three billion dollars on the stock exchange in exchange for additionally issued shares. Such a volume corresponds to one tenth of the estimated market value of the company.