Why JPMorgan, Bank of America, Citigroup and Wells Fargo Stocks surged on Friday

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What happened

Bank stocks rose on Friday as positive news about COVID-19 treatment helped allay investor fears that an increase in the number of coronavirus cases could derail an economic recovery. Megabanks JPMorgan Chase (NYSE: JPM), Bank of America (NYSE: BAC), Citigroup (NYSE: C), and Wells Fargo (NYSE: WFC) increased by 5.4%, 5.5%, 6.5% and 6% respectively.

So what

COVID-19 cases are increasing at an alarming rate in many parts of the United States. Meanwhile, countries like India and China are re-establishing school closings and closings in a desperate attempt to slow the spread of the dangerous disease. This raises concerns about the need for government officials to slow down or even cancel plans for economic reopening in the United States

Banks’ stocks rallied on Friday. Image source: Getty Images.

Friday, the leader in biotechnology Gilead Sciences (NASDAQ: GILD) According to a recent analysis, his experimental drug remdesivir reduced the risk of death in patients with severe COVID-19 by 62% compared to the standard of care. While these results have yet to be confirmed in clinical trials, this was good news for investors.

Now what

While Gilead’s remdesivir and other antiviral treatments can significantly reduce the risk of death from COVID-19, it could help more people return to work safely. This, in turn, could help the economy recover more quickly, which would be a boon for JPMorgan Chase, Bank of America, Citigroup, Wells Fargo and other banking stocks.



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