Wall Street set to open higher on bargain hunting

Wall Street’s main indexes were set to rise on Friday as steep losses in September saw investors buying into cheaper sectors, while drugmaker Merck rose on marking progress in the development of an oral Covid-19 drug.

Shares of Merck & Co Inc jumped 8.3 per cent in premarket trading after the company’s experimental oral drug for Covid-19, molnupiravir, reduced by around 50 per cent the chance of hospitalization or death for patients at risk of severe disease in a study.

Covid vaccine makers Moderna Inc and Pfizer Inc fell 4.4 per cent and 1.3 per cent, respectively, after the news.

Wall Street ended sharply lower on Thursday and the S&P 500 posted its worst month since the onset of the global health crisis, following a tumultuous month and quarter wrecked by concerns over Covid-19, inflation fears and budget wrangling in Washington. “There are few alternatives for investors as they’re somewhat negative on the bond market and cash still (yields) a very low return.”