Preliminary results from a clinical trial investigating the effects of remdesivir on Covid-19 have returned positive data to help patients recover from the contagion.
“For true skeptics, I know how hard it is to believe that such a trivial clinical trial of an old standard drug could have this kind of positive impact,” said the host of “Mad Money.” “This drug makes a big difference, especially if you fear a second wave of infections after the economy reopens.” “
Stocks surged on the news, bringing the Dow Jones Industrial Average by 532 points, or 2.21% higher, the S&P 500 2.66% higher and the Nasdaq Composite 3.57% higher.
While some states allow non-core businesses to reopen gradually and others prepare to reopen their savings in the coming weeks, officials, investors and the general public are concerned whether the lifting of quarantine orders will result in an increase new coronavirus infections. Most of the country spent more than last month on site shelter orders to slow the spread of the deadly virus.
Remdesivir, which has been shown to be effective in treating SARS and MERS, two other diseases caused by coronaviruses, is considered a likely solution to help seriously ill Covid-19 patients recover from the virus more quickly.
“Remdesivir is exactly what the doctor ordered,” said Cramer.
Officials continue to call for increased coronavirus testing capabilities and contact tracing as part of plans to resume operations safely. Many drug manufacturers are also working on a Covid-19 vaccine, but a vaccination should not be available for at least a year.
Remdesivir trials garner praise from White House health advisor and respected immunologist Dr. Anthony Fauci, who said it was “pretty good news” and that the study showed “a clear positive effect reducing the recovery time ”.
Fauci, longtime director of the National Institute of Allergies and Infectious Diseases at the National Institutes of Health, warned Tuesday that the United States “could suffer a bad fall” if no effective treatment is found to alleviate a possible future outbreak later this year.
The US government has taken drastic measures to slow the spread of the deadly virus to prevent medical centers from being swamped with Covid-19 patients. More than a million people have tested positive for the disease and more than 60,000 have died from complications from coronavirus in the United States alone, according to data from Johns Hopkins University.
“This is why the market has soared today, and make no mistake, this decision was only about remdesivir,” Cramer said of the rally on Wednesday. “I can say this with confidence because we are in the middle of the profit season and Wall Street was not exactly thrilled with many of these reports. “