Stocks rallied this week on the heels of positive news from Pfizer and Eli Lilly regarding prospects for a vaccine. A study showed that the vaccine being developed by Pfizer and BioNTech prevented more than 90% of infections, while an antibody therapy from Eli Lilly was granted emergency use authorization in the U.S. Against the backdrop of surging coronavirus cases, this positive news came as a welcomed sign for investors. Coronavirus-plagued sectors like energy and financials soared this week, while market leaders in the technology and communications sector lagged. In the meantime, markets appear to be putting the U.S. elections in the rear-view mirror with the volatility index (VIX) falling by more than 30% over the course of the last week. On the economic front, investors will be keying in on consumer price index (CPI) and producer price index (PPI) data later this week for a read on inflation. Interest rates rallied this week, with the yield on the 2-year and 10-year Treasury notes trading around 0.19% and 0.96% respectively mid-week.
Source: GSAM, CNBC, JPM, Bloomberg