Stocks Cut Gains, Despite Oil Rebound, After Gilead Trial Disappoints

In yet another volatile session on Thursday, stocks pared back gains despite a rebound in oil prices, after reports that a Gilead Sciences clinical trial for its remdesivir drug was not effective in treating coronavirus—though the company quickly disputed that it was an inconclusive trial.

The Dow Jones Industrial Average was up 0.2%, just 40 points, on Thursday, while the S&P 500 and Nasdaq Composite both ended slightly negative.

Stocks rose earlier in the day, with the Dow up to 400 points higher, thanks to a rebound in oil prices: WTI crude oil futures have stabilized since their unprecedented drop earlier this week, rising over 40% in the last two days alone.

The market abruptly slashed its gains and briefly turned negative, however, after a report from The Financial Times—citing documents accidentally published by the WHO—said that a potential coronavirus treatment from Gilead Sciences had flopped in a recent clinical trial.

According to the report, Gilead’s highly-anticipated antiviral drug remdesivir had yielded disappointing results during its first clinical trial in China. Gilead’s stock was briefly halted for volatility as the market fell.

But Gilead was quick to respond and take issue with the report, saying that “because this study was terminated early due to low enrollment,” it did not “enable statistically meaningful conclusions.”

“As such, the study results are inconclusive,” Gilead said, though the company also highlighted that “trends in the data suggest a potential benefit for remdesivir, especially among patients treated early in disease.”

Stocks rebounded after the company’s response, ending the day largely flat. Gilead’s stock finished down 4.3%.