Stocks rise on Wall Street on latest encouraging news of virus vaccines
More encouraging news on the development of coronavirus vaccines and treatments helped power stocks higher on Wall Street Monday, as the market clawed back most of its losses from last week.
The S&P 500 index rose 0.6%, led by banks, energy and industrial companies, sectors that have been beaten down during the pandemic. Health care and technology stocks, which traders have bid up sharply this year, closed lower. Treasury yields mostly rose, another sign of optimism among investors.
The latest vaccine developments are helping to raise hopes that some normalcy will eventually be restored to everyday life and the economy. It is also tempering lingering concerns over rising virus cases in the U.S. and new government restrictions on businesses aimed at limiting the spread.
“Investors continue to
embrace and see the optimism in the development of vaccines, providing light at the end of the tunnel and multiple choices on how to get there,” said Adam Taback, chief investment officer for Wells Fargo Private Bank.
The S&P 500 rose 20.05 points to 3,577.59. The benchmark index, which climbed to an all- time high a week ago, recouped nearly three-fourths of its decline from last week. The Dow Jones Industrial Average gained 327.79 points, or 1.1%, to 29,591.27.
The technology- heavy Nasdaq composite added 25.66 points, or 0.2%, to 11,880.63.
Roughly 73% of the stocks in the S& P 500 rose. In another signal that investors were feeling confident, the Russell 2000 index of smaller stocks outpaced the broader market, picking up 32.96 points, or 1.8%, to 1,818.30. The yield on the 10-year Treasury rose to 0.86% from 0.81% late Friday.
Many of the companies making gains would greatly benefit from a vaccine allowing people to travel, shop and dine out. Cruise line operator Carnival rose 4.7% and hotel company Marriott International gained 3.2%. JPMorgan Chase rose 2.9%.
“You continue to see some rotation into sectors and securities that have been undervalued and still have some upside potential,” Taback said.
AstraZeneca is the latest drug developer to report surprisingly good results from ongoing vaccine studies. It said the potential vaccine, which is being developed with partner Oxford University, was up to 90% effective. Unlike rival candidates, however, AstraZeneca’s doesn’t have to be stored at ultra- cold temperatures, making it easier to distribute.
Last week, Pfizer and Moderna both reported study results showing their vaccines were almost 95% effective. And, over the weekend, Regeneron Pharmaceuticals received U.S. government approval for emergency use of its COVID-19 treatment.