US open: Stocks rally as Gilead's Remdesivir shows effectiveness in coronavirus treatment
US stocks opened higher on Friday after Gilead Sciences revealed one of its drugs had shown effectiveness in treating Covid-19 symptoms.
As of 1525 BST, the Dow Jones Industrial Average was up 2.19% at 24,052.19, while the S&P 500 was 2.12% stronger at 2,858.98 and the Nasdaq Composite started out the session 1.43% firmer at 8,654.70.
The Dow opened 514.51 points higher on Friday after closing out the previous session stronger despite data revealing that millions more Americans had filed for unemployment amid the Covid-19 coronavirus pandemic.
Gilead shares surged 8.26% in early trading after a report revealed that patients in a Chicago hospital were recovering rapidly from severe coronavirus symptoms after taking the group's Remdesivir drug.
IG analyst Joshua Mahony said: "Gilead's Remdesivir trial results have breathed a new sense of optimism into markets, with many seeing this as the potential begging of the end for this coronavirus crisis. However, there are plenty of reasons to be cautious as an investor, with the large-scale results yet to be determined in trials undertaken around the world.
"Nevertheless, from a market perspective, this news allows traders to continue discounting backward-looking economic and corporate data in a bid to remain optimistic that this is a good buying opportunity."
Also underlining sentiment were comments from Donald Trump, who said on Thursday" "Our experts say the curve has flattened and the peak […] is behind us.”
The president also issued guidelines to open up parts of the US, which outlined circumstances necessary for areas of the country to allow employees to start returning to work. However, Trump said the decision to lift restrictions would ultimately be made by state governors.
Confirmed cases of Covid-19 in the US have topped 676,670, claiming the lives of more than 34,780 Americans in the process.
Elsewhere in corporate news, Boeing shares flew higher at the bell after announcing it would resume production in Seattle as soon as 20 April, while Ford shares accelerated 5.06% despite warning of an expected $2bn loss in the first quarter.
On the macro front, the Conference Board's Leading Economic Index for the US declined 6.7% in March to 104.2, following a 0.2% decrease in February and a 0.4% increase in January to record the largest decline in its 60-year history.