Good morning. Another Covid vaccine delay, pipeline hack traces to Russia and a tech stock slump. Here’s what’s moving markets.
Novavax shares slumped in U.S. trading on Monday, after the company’s announcement that it doesn’t plan to file for authorization for its Covid-19 vaccine in the U.S. and Europe until the third quarter. The EU has concluded exploratory talks for up to 200 million doses. In more positive news, the U.S. has authorized Pfizer-BioNTech’s vaccine for children aged 12 to 15. While their cases tend to be milder, kids can still spread the disease and child cases are responsible for a growing proportion of the U.S. total as more adults get vaccinated.
Hacking victim Colonial Pipeline said it’s manually operating a segment of its crucial fuel artery and expects to substantially restore all service by the weekend. U.S. President Joe Biden stopped short of blaming the Kremlin for the Friday attack, but said “there’s evidence” the hackers or the software they used are “ in Russia.” Such evidence includes its use of the Russian language and its exclusion of Russian companies as hacking targets, according to cybersecurity experts. Citigroup analysts say that the U.S. East Coast is at risk of a “temporary, but major shortage” of fuels following the cyberattack that forced the pipeline’s closure.
European stock futures are pointing lower, set to follow Asian markets after a tech-led slump in U.S. shares late Monday. Inflation angst, stoked by a surge in commodity prices, looks to be the likeliest cause for the selloff. As the Nasdaq 100 — trading at more than 5 times annual revenue — dropped more than 2.5%, volatility in tech stocks jumped by the most since early March. With inflation expectations leaping to the highest level since 2006, everything from the biggest megacap tech stocks to the frothiest small fry was slammed. Bears, meanwhile, boosted bets against tech stocks, with short interest on the biggest ETF tracking the Nasdaq 100 increasing to the highest level since August.
App Store Anger
Apple is facing a London lawsuit over claims it overcharged nearly 20 million U.K. customers for App Store purchases, yet another legal headache for the tech giant fighting lawsuits across the world. Apple’s 30% standard fee is “excessive” and “unlawful,” the claimants said in a press release. The claim, filed at London’s Competition Appeal Tribunal on Monday, calls for the U.S. firm to compensate U.K. iPhone and iPad users for years of alleged overcharging. Apple has described the lawsuit as “meritless.’’ The tech giant is already embroiled in another legal tussle over its App Store practices with video game maker Epic.
European stocks look set to join the rout that engulfed Asian shares, which had their worst day in…
Go to the news source: Stock Markets Today: Pipeline hack blame, Novavax delay, Tech decline