The market is rebounding on hope for a treatment, new index tracking coronavirus-drug makers shows
A new CNBC index that tracks the stock performance of companies working on a coronavirus cure shows just how closely the broader stock market rebound is pegged to a viable Covid-19 treatment or vaccine.
The S&P 500 and the CNBC Covid-19 Testing & Treatments Index have moved in near lockstep since the market bottomed on March 23. A look at their movement since the March bottom reveals the S&P 500 and the Covid-19 index tend to rise and fall at the same time.
The relationship between the two reveals just how important coronavirus news is to Wall Street investors, who have for weeks said a reliable treatment is key to unleashing financial markets and an eventual return to all-time highs.
The index jumped 2% on Monday as the S&P 500 gained 1.3%.
CNBC’s Covid-19 Testing & Treatments Index is equal-weighed and currently comprised …continued .
[Source: CNBC News]