US close: Markets finish higher on vaccine hopes
US stocks finished firmly higher on Monday, as Jerome Powell said he was optimistic of the US economy's ability to bounce back from the Covid-19 pandemic, and amid positive data from Moderna Therapeutics' second phase clinical trial on a vaccine candidate for the coronavirus.
The Dow Jones Industrial Average was up 3.85% at 24,597.37, the S&P 500 added 3.15% to 2,953.91, and the Nasdaq Composite rose 2.44% to 9,234.83.
It was a day of gains for the Dow, which opened 701.43 points higher, as the blue-chip index attempted to bounce back from its worst week since early April.
The sharp gains came after Moderna said the second phase of clinical trials on its vaccine candidate against Covid-19 had delivered positive results.
The US biotechnology group said the new data reinforced its belief that its mRNA-based vaccine would be effective in preventing coronavirus infections without serious side effects.
It said the third and final phase of trials was scheduled for July, which would then be followed by a biologics licence application to the US Food and Drug Administration, if successful.
Monday's moves also followed comments from Federal Reserve chairman Jerome Powell, who told CBS that he was "highly confident" that the US economy would bounce back from the coronavirus-fuelled pullback after a vaccine has been developed.
Powell also said he believes the current downturn in the economy would not resemble the Great Depression, despite the possibility that US unemployment could peak at around 25%.
"I don't think that’s the likely outcome at all. We had a very healthy economy two months ago. Our financial system is strong," he said.
"You have governments around the world, and central banks around the world, responding with great force and very quickly. And staying at it."
Oil prices also rallied on the back of an easing of stay-at-home orders, with West Texas Intermediate last up 8.7% at $31.99 per barrel.
On the macro front, the National Association of Home Builders' housing market index bounced back slightly in May following its sharpest single-month drop in history a month earlier.
Confidence in the market for single-family, newly built homes rose seven points to 37, which, while a marked improvement, still kept the index in negative territory.
In corporate news, Tesla shares closed up 1.81% after getting the green light to resume operations at its auto plant in California, while GrubHub added 5.1% after the food delivery firm rejected a buyout offer from ride-sharing giant Uber.
Dow Jones - Risers
Boeing Co. (BA) $135.44 12.87%
Raytheon Technologies Corporation (RTX) $57.90 9.80%
Exxon Mobil Corp. (XOM) $45.34 7.95%
3M Co. (MMM) $149.27 7.63%
American Express Co. (AXP) $88.41 7.53%
Walt Disney Co. (DIS) $116.85 7.15%
Caterpillar Inc. (CAT) $115.02 6.58%
Walgreens Boots Alliance, Inc. (WBA) $40.86 6.41%
Goldman Sachs Group Inc. (GS) $181.88 5.82%
Travelers Company Inc. (TRV) $95.30 5.53%
Dow Jones - Fallers
Merck & Co. Inc. (MRK) $79.72 -0.08%
Dowdupont Inc. (DWDP) $30.52 0.00%
Johnson & Johnson (JNJ) $150.52 0.05%
Pfizer Inc. (PFE) $38.07 0.82%
Unitedhealth Group Inc. (UNH) $293.36 0.82%
Microsoft Corp. (MSFT) $184.91 0.96%
Walmart Inc. (WMT) $127.66 1.37%
Procter & Gamble Co. (PG) $116.21 1.40%
Cisco Systems Inc. (CSCO) $45.06 1.78%
Verizon Communications Inc. (VZ) $55.72 1.85%
S&P 500 - Risers
TripAdvisor Inc. (TRIP) $19.01 21.42%
United Airlines Holdings Inc (UAL) $24.13 21.13%
Wyndham Destinations Inc. (WYND) $27.70 18.63%
Expedia Group Inc. (EXPE) $79.19 18.62%
Norwegian Cruise Line Holdings Ltd (NCLH) $12.88 17.95%
L Brands Inc (LB) $12.77 17.59%
Alliance Data Systems Corp. (ADS) $44.83 17.42%
Marriott International - Class A (MAR) $93.62 17.38%
Halliburton Co. (HAL) $11.51 17.21%
Host Hotels & Resorts Inc. (HST) $11.78 17.10%
S&P 500 - Fallers
Campbell Soup Co. (CPB) $50.94 -4.84%
Citrix Systems Inc. (CTXS) $139.89 -4.66%
Amgen Inc. (AMGN) $233.19 -2.92%
Regeneron Pharmaceuticals Inc. (REGN) $560.28 -2.85%
Clorox Co. (CLX) $203.95 -2.80%
Newmont Corporation (NEM) $66.26 -2.42%
Gilead Sciences Inc. (GILD) $74.76 -1.97%
Quest Diagnostics (DGX) $109.04 -1.84%
Tractor Supply Company (TSCO) $109.76 -1.75%
Vertex Pharmaceuticals Inc. (VRTX) $284.13 -1.58%
Nasdaq 100 - Risers
Expedia Group Inc. (EXPE) $79.19 18.62%
Marriott International - Class A (MAR) $93.62 17.38%
Align Technology Inc. (ALGN) $229.42 12.64%
Booking Holdings Inc. (BKNG) $1,557.43 12.51%
JD.com, Inc. (JD) $55.53 9.20%
American Airlines Group (AAL) $9.87 9.18%
Henry Schein Inc. (HSIC) $56.41 8.98%
Mylan Inc. (MYL) $16.46 8.58%
Dish Network Corp. (DISH) $26.74 8.22%
Western Digital Corp. (WDC) $42.38 8.08%
Nasdaq 100 - Fallers
Citrix Systems Inc. (CTXS) $139.89 -4.66%
Amgen Inc. (AMGN) $233.19 -2.92%
Regeneron Pharmaceuticals Inc. (REGN) $560.28 -2.85%
Workday, Inc. (WDAY) $150.56 -2.42%
Gilead Sciences Inc. (GILD) $74.76 -1.97%
Vertex Pharmaceuticals Inc. (VRTX) $284.13 -1.58%
Activision Blizzard Inc. (ATVI) $72.88 -1.41%
Electronic Arts Inc. (EA) $117.12 -0.85%
NortonLifeLock Inc. (NLOK) $19.94 -0.42%
Netflix Inc. (NFLX) $452.58 -0.35%