Stocks rise on vaccine hopes

NEW YORK — Markets worldwide rallied on rising hopes for a COVID19 vaccine Wednesday, and the S&P 500 climbed back to where it was a few days after it set its record early this year.

Investors see a vaccine as the best way for the economy and human life to get back to normal, and researchers said late Tuesday that one developed by t he National Institutes of Health and Moderna revved up people's immune systems in early testing, as hoped. The S&P 500 rose 0.9% to pull within 4.7% of its all- time high set in February.

The Dow Jones Industrial Average climbed 227.51 points, or 0.9%, to 26,870.10, and the Nasdaq composite gained 61.91, or 0.6%, to 10,550.49. During the morning, the S& P 500 touched i ts highest level since Feb. 25, and it ended the day at 3,226.56, up 29.04.

Several things helped lift the market, including stronger-than-expected reports on the economy and on corporate profits from Goldman Sachs and others. But the vaccine hopes were at the center of the rise, which meant the market' s leaderboard was dominated by companies that would benefit most from a return to normal life. They included cruiseship operators, airlines, retailers and hotel chains.

Stocks of smaller companies also leaped much more than the rest of the market, an indication of rising expectations for the economy. The Russell 2000 index of small-cap stocks jumped 3.5%, a turnaround from earlier months when big, techoriented companies were carrying the market.

“Investors are gaining more confidence of the longer-term direction of the market,” said Sam Stovall, chief investment strategist at CFRA.