Moderna news sparks big rally

The Dow surged 911.95 points, or 3.85{3c4481f38fc19dde56b7b1f4329b509c88239ba5565146922180ec5012de023f}, to close at 24,597.37. The S&P 500 jumped 3.15{3c4481f38fc19dde56b7b1f4329b509c88239ba5565146922180ec5012de023f} to 2,953.91. The Nasdaq Composite advanced 2.44{3c4481f38fc19dde56b7b1f4329b509c88239ba5565146922180ec5012de023f} to 9,234.83. Hope for a potential coronavirus vaccine and positive comments from Federal Reserve Chairman Jerome Powell sent stocks flying on Monday.

Moderna reported “positive” phase one results for a potential coronavirus vaccine. The company said that after two doses all 45 trial participants had developed coronavirus antibodies. The news sparked a market-wide rally. Meanwhile, Federal Reserve Chairman Jerome Powell said to CBS’ “60 Minutes” that “there’s a lot more we can do” to help the economy. “We’ve done what we can as we go. But I will say that we’re not out of ammunition by a long shot.”

Disney shares rose 7.15{3c4481f38fc19dde56b7b1f4329b509c88239ba5565146922180ec5012de023f} as investors rotated into companies that would benefit the most from the U.S. economy reopening. Delta Air Lines closed 13.91{3c4481f38fc19dde56b7b1f4329b509c88239ba5565146922180ec5012de023f} higher while United advanced 21.13{3c4481f38fc19dde56b7b1f4329b509c88239ba5565146922180ec5012de023f}. Carnival shares jumped 15.18{3c4481f38fc19dde56b7b1f4329b509c88239ba5565146922180ec5012de023f}. Netflix, however, fell 0.35{3c4481f38fc19dde56b7b1f4329b509c88239ba5565146922180ec5012de023f} as the “stay-at-home” winners lagged the broader market.

Data on U.S. housing starts are scheduled for release Tuesday along with Home Depot and Walmart earnings. Powell is also set to testify in front of Congress.

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