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Aug 20 at 03:37 AM
📈 Why Do Stocks Rise on Good News?
A catalyst is news that changes investors’ expectations about a company’s future. Merck and Moderna’s positive Phase 3 melanoma trial is a good example. The treatment met its main goal and reduced the risk of cancer returning or death. This creates potential for regulatory submission, approval and future revenue. Investors may therefore believe the companies are worth more. However, good news does not guarantee a rise because the market may have already priced in the expectations.@Captain's Watch
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