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 405.86 points or 1.4%, to 29,885.67, and was on pace to notch a record close.
The S&P 500 achieved a new intraday high, climbing 31.01 points to 3,616.16.
The NASDAQ gained 55.94 points to 11,885.22.
Stocks that would benefit from the economy reopening led the way higher. United Airlines was up 6.5%, and Carnival traded 11% higher.
Bank stocks such as JPMorgan Chase and Wells Fargo gained more than 2% each and Citigroup advanced nearly 4%. Moderna shares jumped 8.2% on the day.
The promising Moderna announcement makes the Massachusetts-based biotech firm the second drugmaker to say it has a potentially effective vaccine.
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.
Traders were also excited on Monday 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 4 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 lower, raising yields to 0.91% from Friday's 0.9%. Treasury prices and yields move in opposite directions.
Oil prices gained $1.23 to $41.36 U.S. a barrel.
Gold prices added $5.30 to $1,891.50