The impact of covid-19 vaccination on stock markets: a comparative analysis of the USA and China

This study aimed to reveal the emergence of the vaccine against COVID-19 and its influence on the stock markets. In line with this purpose, this study seeks answers to some questions, whether vaccination supports the recovery of financial markets or not, and in which direction the effect is similar in the context of developed and developing countries, considering the United States and China samples. Fourier-based cointegration and causality tests were used to reveal the effect of COVID-19 vaccination on stock markets in the paper, which used daily data between March-2021 and September-2022. According to the results vaccination rates triggered the stock market prices in the U.S.A.. Moreover obtained findings show that the Chinese stock market and COVID-19 vaccination act together in the long term during the data range examined. Finally, it seems possible to state that it would be beneficial for investors investing in both the U.S.A. and China markets.