Midday Market Update: Massive Risk-on Move

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Stocks rose by midday Friday, lead by cyclical and lockdown-sensitive sectors of the economy, as Gilead Sciences  (GILD) - Get Gilead Sciences, Inc. (GILD) Report announced positive results in a phase of coronavirus vaccine trials. 

The S&P 500 rose as much as 0.5%, while the tech-heavy Nasdaq was flat to down a tick. The 10-Year Treasury yield rose to 0.62%. 

Gilead Sciences said its phase three COVID vaccine testing was yielding very positive results. The stock rose more than 2%. In premarket trading, cyclical stocks were faltering before the Gilead news broke just before the opening bell, which showed a change in market sentiment. 

Large cap consumer discretionary, oil and industrials rose between 1% and 3%. The Invesco KBW Bank ETF  (KBWB) - Get Invesco KBW Bank ETF Report rose more than 3%. Banks are largely in a bear market since June 8 and many are trading at prices below their book values. Investors are awaiting a batch of bank earnings reports out next week. Wells Fargo  (WFC) - Get Wells Fargo & Company Report, the most heavily weighted towards the yield curve of all the large cap banks, rose 3.3%. 

Tech stocks lagged the broader market, with the NYSE FANG Index flat to up. 

This all comes as virus cases continue to climb, although investors are encouraged that, even if there are more lockdowns, more fiscal stimulus will combine with monetary stimulus to hold over consumer spend and businesses liquidity. 

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