In a word: Gilead. It’s the optimism associated with the company’s experimental Covid-19 therapy which has supported risk assets as this week nears the final stretch. Overnight, equity futures hit new post-crash highs (2965 for the S&P) as investors take solace in the progress being made to combat the outbreak. While Remdesivir (we’re never going to correctly pronounce that) isn’t a vaccine nor a silver-bullet to end the pandemic, the development of such a drug has shifted investor sentiment and points toward a potential path back toward a version of normality. While risk assets have benefited on the margin from this news, Gilead cannot be credited for the rally in domestic equities which has trimmed the year-to-date losses in the S&P 500 to just 9%. It’s well within the realm of conceivable outcomes that May is the month stocks breakeven for 2020; leaving behind the volatility of March and April. For context, the Nasdaq is already effectively flat on the year…CLICK for complete article
“The Bond Market Hasn’t Been Overcome By The Same Optimism As Stocks”
Posted by Ian Lyngen, Jon Hill & Benjamin Harvey
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