Investors cheered on Monday after drugmakers Pfizer and BioNTech said trial data indicated their Covid-19 vaccine is 90% effective.
Futures for the Dow Jones Industrials took off for the stars, gaining 1,537 points, or 5.5%, to 29.741.
Futures for the S&P 500 jumped 142.75 points, or 4.1%, at 3,642.75.
Futures for the NASDAQ Composite spiked 55.5 points, or 0.5%, to 12,120.50, as traders left crowded growth and stay-at-home stocks in favor of cyclical companies that could outperform if the Pfizer vaccine is approved for widespread use.
Many on Wall Street applauded the announcement as a sign that the pharmaceutical industry may soon have a viable way to control a disease that has derailed the U.S. economy for much of 2020 and has killed more than 230,000 Americans.
The 90% effective rate from Pfizer and Germany’s BioNTech was better than what the market was expecting. Dr. Anthony Fauci, the director of the National Institute of Allergy and Infectious Diseases, has said that a vaccine that was 50% to 60% effective would be acceptable.
Stocks were already set to continue their big post-election rally Monday as Democrat Joe Biden defeated incumbent Donald Trump in the U.S. presidential race to become president elect.
Overseas, in Japan, the Nikkei 225 index hiked 2.1%, while in Hong Kong, the Hang Seng index leaped 1.2%.
Oil prices leaped $3.63 to $40.77 U.S. a barrel.
Gold prices collapsed $50.60 to $1,901.10.