Stocks - Dow Soars as Vaccine Hopes Trigger Sea of Green
Investing.com
Published May 18, 2020 12:43PM ET
Updated May 18, 2020 01:57PM ET
By Yasin Ebrahim
Investing.com – The Dow surged on Monday as signs of progress on a potential Covid-19 vaccine and hopes of further central bank stimulus triggered a sea of green across stocks.
The Dow Jones Industrial Average rose 3.29%, or 892 points, the S&P 500 gained 3.29%, while the Nasdaq Composite added 2.58%.
Moderna (NASDAQ:MRNA) said clinical results suggested its vaccine has a "high probability" to provide protection from coronavirus disease, sending its share about 25% higher.
The positive update from Moderna bolstered investor hopes that a vaccine may be found sooner rather later, strengthening expectations for quicker economic recovery.
Travel and tourism sectors, which have been hit hard by the pandemic, were up sharply, led by cruise companies, hotels and airlines.
Marriott International (NASDAQ:MAR), MGM Resorts (NYSE:MGM), United Airlines (NASDAQ:UAL) and Norwegian Cruise Line (NYSE:NCLH) among the biggest movers, with the latter up about 23%.
Uber Technologies (NYSE:UBER), meanwhile, was also in rally mode, up about 7%, as the ride-sharing company announced that it would cut 3,000 jobs and focus on its core ride-hailing and food delivery businesses as it continues on its path toward profitability.
Energy stocks jumped 7% on a 6.5% surge in oil prices amid ongoing bets for a recovery crude demand.
Exxon Mobil (NYSE:XOM) was up 7%, Apache (NYSE:APA) rose 14% and Halliburton (NYSE:HAL) gained 14%
The bold start to the week on Wall Street was also helped by growing expectations for more stimulus after Federal Reserve Jerome Powell said there was "no limit" to what the central bank can do with its lending programs that were announced in March.
Powell did caution, however, the U.S. economy may not fully recover until there is a vaccine.
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