The stock market has been very sensitive to updates on coronavirus remedies and treatments in this pandemic era.
The best example of that was Monday’s euphoric trading that saw seismic moves play out across the market as investors attempted to rejigger their portfolios.
Research from Goldman Sachs and Good Judgment Inc. highlights how pivotal the positive news regarding the experimental vaccine candidate being developed by Pfizer Inc. PFE, -0.46% and Germany-based BioNTech SE BNTX, -2.93% was for some market sectors.
As it illustrates, the energy and materials sectors, which have significantly lagged behind the broader market, both saw the most excess positive returns to the news on Monday.
In fact, the S&P 500’s SPX, +0.76% energy sector is up 15.6% so far this week, while financials have risen 8.2%, the industrial sector has gained over 4%, and the real estate and utilities sectors were each enjoying weekly returns of greater than 3% so far.
As Goldman’s chart also notes, consumer discretionary, down 1.3%, information tech, off 0.3%, and communication services were the only sectors not seeing a substantial weekly rise.
To be sure, Wednesday’s rebound in tech and tech-related names, which helped trim the Nasdaq Composite’s weekly drop, may signify that the run-up in so-called beaten-down value assets may have been overdone.