Stocks are rallying again Monday, with the S&P 500 adding more to its record high and the Dow Jones Industrial Average on track to erase the last of its pandemic losses, following another round of encouraging data on a possible coronavirus vaccine.
Moderna said early in the morning that its COVID-19 vaccine appears to be 94.5% effective, according to preliminary data. It’s the second time this month that a company unveiled such encouraging numbers about a vaccine, boosting hopes that the global economy can return to some semblance of normal next year.
Leading the way again for markets were stocks of companies whose profits would benefit the most from the economy climbing out of its deep recession, such as travel companies and banks. At the same time, investors’ interest continued to dim for tech companies and other stocks that dominated the stay-at-home economy created by the pandemic.
The S&P 500 was 1.1% higher in midday trading and adding to its all-time high set on Friday. The Dow Jones Industrial Average was up 442 points, or 1.5%, at 29,922, as of 11:33 a.m. Eastern time, and on pace to surpass its record of 29,551.42 set in February before panic about the pandemic sent stocks tumbling. The Nasdaq composite was 0.7% higher, lagging the rest of the market amid lessened interest for tech stocks.
Treasury yields, oil prices and stocks around the world also rallied on the shot of increased optimism. A vaccine is precisely what markets have been waiting for to pull the global economy out of its cavern, and analysts say it’s a game changer.
Of course, for all its euphoria, many risks remain for the market. It’s still not guaranteed when a vaccine could be widely available, let alone whether one ultimately will. The pandemic is continuing to worsen, meanwhile, with rising coronavirus counts across the United States and Europe pushing governments to bring back varying degrees of restrictions on businesses…
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