But it’s not translating into broader market gains as investors apparently had been expecting that outcome and seem to be more focused on the lack of a stimulus deal. On the One Hand, CautionYesterday, while Wall Street waited for a stimulus package from Congress and news from the FDA advisory panel on the vaccine, a tug of war between varying sentiment seemed to be playing out. With the fresh evidence that the pandemic is slowing the pace of economic recovery, investor jitters increased and pushed Wall Street’s main fear gauge, the Cboe Volatility Index (VIX), higher and increased demand for longer term U.S. government debt. With a rise of more than 1%, it seems like investors and traders were thinking that a vaccine and eventual stimulus deal could end up helping the economic recovery (see chart below). U.S. benchmark WTI crude also rose as traders apparently have been cheered about a global demand recovery helped by the vaccine.

Source: Forbes December 11, 2020 14:48 UTC