Goldman Sachs says investors are underestimating the chance of a COVID-19 vaccine in 2020, an event that could push the S&P 500 11% higher

Reuters/ Lucas Jackson

• Goldman Sachs thinks markets are underpricing the prospect that at least one coronavirus vaccine will be developed and ready for use by the end of 2020.
• The US bank said in a note Wednesday that it its "upside scenario" is for the S&P 500 to rise 11% to 3,700 by year end in the event of a vaccine becoming available.
• "Options markets are underpricing the upside for equity indices from an early vaccine," a Goldman team of Kamakshya Trivedi, Zach Pandl, and Dominic Wilson wrote.
• "We agree that there is now a good chance that at least one vaccine will be FDA-approved by the end of November and broadly distributed by the middle of 2021," they added.
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Investors should price that at least one vaccine will be developed by year end which could drive the S&P 500 up 11%, Goldman Sachs said. 

In a note Wednesday, the US banking giant, said: "We agree that there is now a good chance that at least one vaccine will be FDA-approved by the end of November and broadly distributed by the middle of 2021."

See the rest of the story at Business Insider

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