The stock market surged Monday on promising news that Pfizer’s Covid-19 vaccine candidate had proved 90 percent effective in late-stage trials, signaling that some relief is on the horizon for the country’s pandemic-stricken economy. But as investors sell off tech stocks for investments in beleaguered leisure or hospitality companies, market strategists and analysts warn that the economy still faces a long path toward recovery.
“The news is encouraging, but it’s important to have a little bit of humility,” said Ryan Sweet, a senior director of economic research with Moody’s Analytics. “I think markets are looking a year ahead from now — if [the vaccine] is widely distributed, the economy will be healing more quickly.”
Despite news of a promising vaccine candidate, the U.S. is still on track for a slow and grueling economic recovery, economists said. Moody’s still forecasts that the country will not fully recover the 22 million jobs lost to the pandemic until 2024. The economy is still on course to contract by about 2.9 percent this year, according to estimates from Deutsche Bank. Meanwhile, about 13 million consumers reach a financial cliff in December when federal pandemic unemployment benefits expire.