Moderna Jumps 11% on Covid and Bird Flu News, Outperforming Falling Nasdaq 100

Biotech Stocks Surge on Covid and Bird Flu News as Major Indices Slide on Rate Concerns

Biotech stocks outperformed Tuesday, bucking the broader market’s decline driven by rising Treasury yields and questions over potential Federal Reserve rate cuts. While the S&P 500 dipped 1.11% to 5,909.03, the Dow Jones Industrial Average lost 178.20 points (0.42%) to close at 42,528.36, and the Nasdaq Composite slid 1.89% to 19,489.68, biotech names surged on renewed interest in Covid and bird flu vaccines.

Moderna led the gains with an 11.74% jump to $47.39, while BioNTech climbed 5.63% to $126.98. Novavax soared 11.07% to $10.84, testing its 200-day moving average. The rally came after the Centers for Disease Control and Prevention (CDC) reported a two-week rise in Covid cases and the first U.S. bird flu death, fueling interest in vaccine producers.

How Did Key Biotech Stocks Perform?

Moderna’s breakout above its 50-day moving average signaled renewed bullish momentum, with BioNTech similarly breaking a consolidation phase dating back to November.

Novavax crossed its 50-day average and is now testing its 200-day level, suggesting a potential trend reversal if upward pressure persists.

Pfizer, BioNTech’s partner on the Covid vaccine, edged 0.86% higher to $27.12. Although Pfizer’s move was more modest, its gain contrasted with the broader market’s weakness, highlighting resilience within the biotech sector.

What’s Driving the Surge in Biotech Stocks?

The CDC reported a 6.3% rise in Covid cases over two weeks, with a 7.1% spike in test positivity during the past week. The Pacific Northwest saw the sharpest increases, while southern regions experienced smaller gains. This rise could extend the typical vaccine sales window, benefiting companies like Moderna and BioNTech, which rely heavily on fourth-quarter demand.

Moderna’s development of a bird flu vaccine has also drawn investor interest. The CDC confirmed the first U.S. death from H5N1, spotlighting the potential severity of the virus and driving demand for related vaccines.

Sector-Wide Implications and ETF Movement

Biotech ETFs reflected the surge. The VanEck Biotech ETF (BBH) and iShares Biotechnology ETF (IBB), with significant holdings in Moderna and BioNTech, saw increased buying activity. Broader health care ETFs like the Health Care Select Sector SPDR Fund (XLV) also advanced, reflecting the sector’s relative strength against broader market weakness.

Outlook for Biotech and Health Care Stocks

As traders digest the latest economic data and rising yields, biotech stocks could remain a focal point if Covid and bird flu trends persist. Analysts forecast strong fourth-quarter sales for Moderna, BioNTech, and Novavax, but expect a sharp slowdown in the first quarter. Prolonged health concerns could alter those projections and provide further upside for vaccine producers.

Investors will watch closely for CDC updates and company announcements regarding vaccine production and regulatory progress, with biotech names continuing to serve as a hedge against broader market volatility.

More Information in our Economic Calendar.