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Moderna Stock Spikes on Coronanvirus Vaccine Test

Moderna, a Cambridge, Massachusetts-based biotechnology company, announced that one of its COVID-19 vaccine trials has seen promising results. The vaccine has only been tested on a handful of individuals, but it has shown an ability to promote antibodies and an immune response when exposed to coronavirus in a lab. While the vaccine will need to undergo much more rigorous testing before it can be manufactured and made available to the public, Moderna’s announcement has given hope to many people, including investors.

A financial advisor can guide your investments through the coronavirus crisis. Speak with a financial advisor today.

What Moderna’s Vaccine Trial Has Shown

Moderna, like many other biotechnology companies around the world, set out to develop a vaccine for the coronavirus as the pandemic began to spread globally back in February and March. Moderna’s vaccine is the first to be tested on people, and it was developed alongside the National Institute of Allergy and Infectious Diseases.

The first eight people to be tested with the potential vaccine have showed promising results. The participants, healthy volunteers between the ages of 18 to 55, have received two doses of the vaccine since March. Their bodies produced antibodies which were able to successfully prevent the virus from replicating in a lab environment. The antibody levels in these participants reflected or exceeded the antibodies found in patients who had recovered from the disease itself.

While the trial vaccine seems like good news, it’s important to remember that there’s still a long way to go before a vaccine will be available for public distribution. More trials will need to be conducted before we can know for sure that the vaccine works to keep people safe from coronavirus. Furthermore, developing a vaccine typically takes 10 to 15 years, so compressing that timeline down to 12 or 18 months would be unprecedented.

The Financial Implications of Moderna’s Vaccine Trial

Moderna Stock Spikes on Coronanvirus Vaccine Test

The positive Moderna trial offers some good news as the world continues to seek out preventative measures to halt the spread of coronavirus. It provides what many see as a light at the end of the tunnel, despite the roadblocks that still stand in the way. The stock market has proven to be particularly encouraged by Moderna’s recent news, as Wall Street saw an overall jump on the morning of Monday, May 18.

As a result of this trial, Moderna’s stock has continued to consistently rise, with the company’s stock shares having been up by more than 20%. Other firms, such as Pfizer, have also been working on a coronavirus vaccine, with their stock prices also seeing simultaneous increases.

With every new development to this situation, we’re likely to see improvements in the stock market and beyond. A working COVID-19 vaccine could be enough to catapult markets further upwards, which would be a welcome sign for the economy. Whether these increases translate to an economic boost for the millions of Americans left unemployed by the coronavirus crisis remains to be seen, though.

Bottom Line

The fact that Moderna’s coronavirus vaccine trial has shown promising results is good news. However, its far from the end of the road when it comes to the coronavirus crisis. Markets have already begun to tick upwards after hearing Moderna’s report, and savvy investors can certainly take advantage. However, a long-term and broad-based economic recovery may be further out than the market might indicate.

Investing During the Coronavirus Pandemic

Photo credit: ©iStock.com/Bill Oxford, ©iStock.com/sanjeri

Sam Lipscomb, CEPF® Sam Lipscomb is a writer for SmartAsset. His work spans a wide variety of personal finance topics with expertise including retirement, investing and savings. He is particularly well versed in credit cards. Sam has been featured in The Economist and on The Points Guy. He is a Certified Educator in Personal Finance (CEPF®). Sam graduated from Kenyon College with a degree in Economics and enjoys being a go-to resource for family and friends when it comes to personal finance. Originally from Washington, DC, Sam loves all things aviation and is a Cleveland sports fan. He currently lives in New York.
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