Dow Jones Surges 600 Points as Merck Works on Vaccine, Restaurant Activity Picks Up
The Dow Jones Industrial Average (DJINDICES: ^DJI) started off the holiday-shortened week with a bang, up about 2.5% by 10:35 a.m. EDT Tuesday. While the U.S. economy remains depressed due to the pandemic and the resulting stay-at-home orders, the worst may be over as businesses are slowly allowed to reopen across the country. Whether the worst is actually over depends on the trajectory of the virus in the coming months.
One reason for the optimism is increased activity around vaccine development. Merck (NYSE: MRK) stock rose on Tuesday after the company embarked on two collaborations, one for a vaccine and one for an antiviral to treat COVID-19. Shares of McDonald's (NYSE: MCD) were also higher as diners began to slowly return to restaurants, although the recovery is still in its early stages.
A safe and effective vaccine to prevent COVID-19, the disease caused by the novel coronavirus that has killed nearly 100,000 people in the U.S., may be the only way for the economy to fully recover. Until people feel safe going about their day, economic activity will likely remain suppressed.
Source Fool.com
