KEY POINTS
  • Shares of Disney closed up nearly 12% Monday after drugmakers Pfizer and BioNTech reported positive results from their Covid-19 vaccine trial, leading investors to flock back toward travel-heavy stocks.
  • Disney has continued to feel the impact of the Covid-19 pandemic, with its parks and studio entertainment segments suffering steep losses.
  • But Monday's announcement provided some investors with a sense of hope that the pharmaceutical industry may soon have a viable way to control the pandemic.
Disney cast members welcome guests to Magic Kingdom Park at Walt Disney World Resort.
(Photo by Kent Phillips/Walt Disney World Resort via Getty Images)

Shares of Disney closed up nearly 12% Monday after drugmakers Pfizer and BioNTech reported positive results from their Covid-19 vaccine trial, leading investors to flock back toward travel-heavy stocks.

Traders have spent the last several months piling into technology stocks that benefitted from people staying at home, such as Zoom Video and Peloton. But after the pharmaceutical companies announced their vaccine was more than 90% effective in preventing Covid-19 among those without evidence of prior infection, investors seemed to step back from the high-flying names and flocked toward companies that would benefit from the economy reopening.