Vaccine manufacturer Moderna's CEO Stephane Bancel was on CNBC this morning touting new (not peer reviewed and very small) study results that showed the company's vaccine could possibly help create Chinese coronavirus antibodies in humans. The vaccine "can create an immune-system response in the body that could help fend off the new coronavirus" according to the company.

U.S. equity markets were up approximately 3% on the open.

"This is a very good sign that we make an antibody that can stop the virus from replicating,” The data “couldn’t have been better,” he said.

A phase 2 trial is expected to begin shortly, and a final-stage trial will begin in July, Moderna said.

The market rally is primarly based on Fed actions however and is ignoring the start of new trade tension with China. U.S. semiconductor manufacturers began halting shipments of chips to Chinese telecom giant Huawei.

However, the latest restrictions unveiled by the Commerce Department late last week and over the weekend will "narrowly and strategically” target a loophole that allows US companies to produce chips overseas with American technology to get around the restrictions. This will no longer be allowed, as even foreign companies that depend on US products will be forced to comply. In response, other global chipmakers are refusing to ship certain products to Huawei. This group includes the world's biggest contract chipmaker, Taiwan Semiconductor Manufacturing Co, wrote Zero Hedge.

According to Nikkei Asian Review reported published Monday morning, TSMC has halted new orders from Huawei in response to tighter US export controls. Prior to the new declaration, some companies evaded existing US sanctions by producing semiconductor chips overseas, using American technology, then selling them directly to Huawei.

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