90-Second Read: Biotech Stocks Rally on Hantavirus Fears: Is the Surge Overdone?

Given that we are barely five years removed from the COVID-19 pandemic, it's natural for consumers and investors to have concerns when hearing about the limited Hantavirus outbreak and react quickly. Earlier this month, several passengers aboard a cruise ship with 147 people reported various symptoms, prompting health officials to test and identify seven cases of Hantavirus on the ship, as of this writing. Biotech Stocks Rally on Hantavirus Fears: Is the Surge Overdone?

Significant news coverage and COVID-19 flashbacks have driven investors into biotech stocks over the past week. The market has driven biotech stocks, such as Moderna (NASDAQ: MRNA), Novavax, and Inovio significantly higher over the past week. According to the Centers for Disease Control and Prevention (CDC), Hantaviruses are a group of viruses worldwide that can cause serious and even fatal illnesses.

They are usually spread by rodents, and most Hantaviruses are not spread person to person. So, when Moderna disclosed that it was working on a Hantavirus treatment that's in the beginning stages of development, the stock rocketed higher, likely because it was also one of the winners of the COVID-19 pandemic. Continue » However, the best investors know that reacting to headlines and near-term events is rarely the best strategy, so it's important that investors avoid rash decisions and conduct thorough due diligence before investing in these stocks.