U.S. stocks rose on Monday after preliminary coronavirus vaccine data from Moderna further lifted expectations of a strong economic recovery.
The Dow Jones Industrials spiked 470.63 points or 1.6%, to 29,950.44, to a new record close.
The S&P 500 also chieved a new high, climbing 41.76 points, or 1.2%, to 3,626.91
The NASDAQ gained 94.84 points to 11,924.13.
Stocks that would benefit from the economy reopening led the way higher. United Airlines was up 5.2%, and Carnival closed 9.7% higher. Bank stocks such as Citigroup and Wells Fargo gained more than 3% each and JPMorgan Chase advanced 2.8%.
Shares of companies that have thrived during the pandemic as people spend more time at home lagged the boarder market. Netflix slid 0.8%. Amazon shares closed flat.
Moderna shares jumped 9.5% on the day. The promising Moderna announcement makes the Massachusetts-based biotech firm the second drugmaker to say it has a potentially effective vaccine.
Similar trial results last week from Pfizer and BioNTech drove investors into underperforming names dependent on a vaccine reopening the economy. The companies said at the time that their candidate was more than 90% effective in preventing Covid-19 among participants.
Traders were also excited on Monday after Moderna said its vaccine remains stable at 36 to 46 degrees Fahrenheit, the temperature of a standard home or medical refrigerator, for up to 30 days. It can be stored for up to six months at negative 4 degrees Fahrenheit. By comparison, Pfizer’s vaccine requires a storage temperature of minus 94 degrees Fahrenheit.
To be sure, the number of coronavirus cases are still rising, thus threatening the prospects of a swift economic recovery.
More than 11 million Covid-19 infections have been confirmed in the U.S., according to data from Johns Hopkins University. Data from the COVID Tracking Project also showed that a record of more than 68,500 people in the U.S. are hospitalized with the coronavirus.
Prices for the 10-Year Treasury were lower, raising yields to 0.91% from Friday’s 0.9%. Treasury prices and yields move in opposite directions.
Oil prices gained $1.29 to $41.42 U.S. a barrel.
Gold prices added $1.40 to $1,887.60