Progress toward an inoculation could also have an impact on the timing and scope of fresh spending on U.S. pandemic relief, according to Michael Purves, chief executive officer at Tallbacken Capital Advisors LLC.
The “stronger the vaccine news becomes, it seems reasonable to assume that a Republican Senate will fight for a considerably smaller fiscal package the economy and the markets can count on,” he wrote in a note. That could wind up becoming a “considerable market vulnerability,” he added.
--With assistance from Cormac Mullen and Andreea Papuc.
This article was provided by Bloomberg News.