U.S. Stocks Set To Open Higher As U.S. Approves Remdesivir For Use Against COVID-19

U.S. Approves Gileads Remdesivir As COVID-19 Drug

Shares of Gilead are gaining about 4% in premarket trading as U.S. approved remdesivir as a treatment for COVID-19. While many drugs have been tested to fight against the disease, only Gilead‘s remdesivir managed to get regulator’s approval.

This approval will likely provide support to other companies in the sector. Vaccine developers Pfizer, BioNTech, Moderna are also gaining ground ahead of the market open.

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The first drug approved for the use against coronavirus could provide additional support to the general market as traders are eager to buy stocks on any hint that the world will be able to solve the coronavirus crisis.

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[fx-article-ad]Traders Remain Focused On Stimulus Negotiations

This weeks news flow was dominated by reports about the ongoing stimulus negotiations. The market action was choppy as traders tried to evaluate whether Republicans and Democrats will be able to reach a compromise deal before November elections.

House Speaker Nancy Pelosi has recently stated that negotiations continued to progress. However, it remains to be seen whether Republicans will be ready to vote for a huge stimulus package that is proposed by Democrats.

Today, S&P 500 futures are gaining ground in premarket trading as traders are in optimistic mood ahead of the weekend. However, the situation may change quickly if evidence emerges that aid negotiations have stalled.

All Eyes On Flash PMI Data For October

Today, U.S. will release Flash PMI reports for October. Manufacturing PMI is expected to increase from 53.2 in September to 53.4 in October while Services PMI is projected to stay unchanged at 54.6.

Reports from other countries signaled that the services segment was struggling amid a second wave of the virus.

Euro Area Services PMI declined from 48 in September to 46.2 in October compared to analyst consensus of 47. Numbers below 50 show contraction. In the UK, Services PMI declined from 56.1 to 52.3 while analysts expected Services PMI of 54.

A weaker-than-expected U.S. Services PMI report will signal that economic recovery is losing steam and may put some pressure on stocks, although stimulus negotiations will remain the most important driver for the market.

For a look at all of todays economic events, check out our economic calendar.