Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

Wall Street hits record highs as vaccine trial results raise hopes

Published 09/11/2020, 12:28
Updated 09/11/2020, 20:01
© Reuters. The U.S. flag is seen outside of the New York Stock Exchange (NYSE) in New York City

© Reuters. The U.S. flag is seen outside of the New York Stock Exchange (NYSE) in New York City

By Sinéad Carew

NEW YORK (Reuters) - Wall Street's three major indexes hit record highs on Monday as the first positive data from a late-stage COVID-19 vaccine trial prompted hopes that an economic recovery from the pandemic-driven crisis was finally in sight.

Oil prices surged more than 8% and pushed up energy stocks while U.S. Treasuries sold off after U.S. drugmaker Pfizer (N:PFE) and its German partner BioNTech (O:BNTX) said a large-scale trial of their vaccine showed it was more than 90% effective in preventing COVID-19.

Saturday's news that Joe Biden had won the U.S. presidential election was also a reassuring confirmation of what investors had already been counting on by the end of last week, according to market strategists.

"Election uncertainty is fading into the rearview mirror. Now we have this boost of investor enthusiasm after the vaccine news," said to Michael Antonelli, market strategist at Baird in Milwaukee. "All the types of companies that would benefit from us returning to a pre-COVID world are the big winners today."

Sectors such as energy, travel and financials which were among the hardest hit by lockdowns aimed at curbing the virus were the biggest percentage gainers on Monday.

While the vaccine study is still ongoing, Pfizer and BioNTech said they had found no serious safety concerns so far and expected to seek U.S. emergency use authorization later this month.

"It's not that we're out of the woods with COVID. It's that the vaccine starts to remove the worst case scenario that we surge out of control and go back into a national lockdown," said Antonelli. "The market's looking into the future, to the first and second quarter of next year."

At 2:42 p.m. EST (1942 GMT), the Dow Jones Industrial Average (DJI) rose 1,265.57 points, or 4.47%, to 29,588.97, the S&P 500 (SPX) gained 94.72 points, or 2.70%, to 3,604.16 and the Nasdaq Composite (IXIC) added 12.37 points, or 0.1%, to 11,907.60.

The S&P energy index (SPNY), up 15%, was on course for its biggest daily percentage gain since March as investors bet demand would climb again when people become more comfortable with the idea of traveling as the health crisis subsides.

Also, bank shares <.SPXBK>, often seen as a proxy for the broader economy, jumped about 14%.

The companies hit hardest by months of travel bans and lockdowns soared. the NYSE airlines index (XAL) was up 19% while plane maker Boeing Co (N:BA) jumped 15%. Cruise line operator Carnival Corp (N:CCL) was up more than 32%.

In contrast, the technology sector and specific companies that had outperformed during the pandemic as they were seen as "stay-at-home" winners were making smaller gains or declining.

Netflix Inc (O:NFLX) fell 6.6% and Amazon.com Inc (O:AMZN) 2.8%, while Zoom Video (O:ZM) fell more than 14% and exercise bike maker Peloton (NASDAQ:PTON) Interactive Inc PTON.O> plunged 15.6%, limiting the Nasdaq's (IXIC).

Stocks around the world scaled a record high earlier in the day and the dollar remained weak as expectations of better global trade ties and more monetary stimulus under President-elect Biden also lifted demand for risky assets.

Biogen Inc (O:BIIB) slumped about 27.7% as a panel of experts to the U.S. health regulator voted against the drugmaker experiment Alzheimer's treatment.

Advancing issues outnumbered declining ones on the NYSE by a 4.12-to-1 ratio; on Nasdaq, a 2.44-to-1 ratio favored advancers.

© Reuters. The U.S. flag is raised on the front facade of the NYSE in New York

The S&P 500 posted 140 new 52-week highs and 1 new lows; the Nasdaq Composite recorded 244 new highs and 23 new lows.

Latest comments

still long process more...not so easy...
yes I did same deal twice. buying 3uls at 3560 so 100pts profit twice. got lucky
Shame HL platform is down! Struggling to even log in 😞 end up sold the shares twice... dont even know if possible to even shorted a stock on HL
if you sold twice and got money in bank ...just cash it out...simples
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.