U.S. stocks jumped on Monday after Moderna said preliminary trial data showed its coronavirus vaccine was more than 94% effective.
The Dow Jones Industrials spiked 339.44 points or 1.2%, to 29,819.25, and was on pace to notch a record close.
The S&P 500 achieved a new intraday high, climbing 28.7 points to 3,613.85.
The NASDAQ gained 58.65 points to 11,887.93.
The promising announcement makes the Massachusetts-based biotech firm the second drug maker to say it has a potentially effective vaccine. Moderna shares rallied nearly 11% on the day.
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.
Stocks that would benefit from the economy reopening led the way higher. United Airlines was up 4%, and Carnival traded 8.4% higher.
Traders were also excited 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 four 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 unchanged, maintaining Friday’s yields at 0.9%.
Oil prices gained $1.59 to $41.72 U.S. a barrel.
Gold prices added $3.20 to $1,889.40