Wall Street rallied on Monday, coming off a tumultuous week as investors digested full FDA approval of a COVID-19 vaccine and looked ahead to the Jackson Hole Symposium expected to convene later this week.
All three major U.S. stock indexes were sharply higher, with the S&P 500 and the Nasdaq on course to notch record closing highs. Surging crude prices, driven by expected demand growth, helped put energy shares out front.
"It's indicative of a market with good momentum behind it," said Ross Mayfield, investment strategy analyst at Baird in Louisville, Kentucky. "It’s the kind of market you want to participate in. Despite the many negative headlines, the market keeps making all-time highs."
The U.S. Food and Drug Administration (FDA) granted full approval to the COVID-19 vaccine developed by Pfizer Inc and BioNTech SE in a move that could accelerate inoculations in the United States.
"It opens the door to more mandates. Whether by carrot or stick it will push the vaccination rate higher," Mayfield said. "One day at a time, we’re working toward a world where we can at least live comfortably with this virus."
Pfizer and U.S.-listed shares of BioNTech were up 2.7% and 8.3%, respectively.
Rival Moderna Inc gained 5.9%.
Spiking COVID-19 infections caused by the highly contagious Delta variant have fueled concerns over a protracted recovery from the global health crisis.
For an interactive graphic on worldwide vaccine deployment and access, click here https://graphics.reuters.com/world-coronavirus-tracker-and-maps/vaccination-rollout-and-access.
Data released on Monday painted a mixed portrait of an economy inching back to normal in the wake of the most abrupt contraction in history.
Sales of pre-owned homes unexpectedly increased in July, according to the National Association of Realtors, while a report from IHS Markit showed business activity accelerating this month.
The "Goldilocks" portrait of an economic recovery headed in the right direction, but not robust enough to warrant a change in the Federal Reserve's dovish monetary policy, helped feed investor risk appetite.
Market participants look to the Jackson Hole Symposium, due to convene in Wyoming later this week. Fed Chairman Jerome Powell's comments will be closely parsed for clues regarding the central bank's policy-tightening timeline.
The Dow Jones Industrial Average rose 280.29 points, or 0.8%, to 35,400.37, the S&P 500 gained 45.16 points, or 1.02%, to 4,486.83 and the Nasdaq Composite added 236.27 points, or 1.61%, to 14,950.94.
The 11 major sectors in the S&P 500 were mostly green, with energy enjoying its best day in nearly two months.
Exxon Mobil Corp and Chevron Corp were up 4.2% and 2.8%, respectively.
U.S.-listed shares of Trillium Therapeutics Inc soared 189.7% after Pfizer agreed to buy the cancer drug developer in a $2.26 billion deal.
General Motors Co fell 1.2% after announcing it would take a $1 billion hit to expand the recall of its Chevrolet Bolt electric vehicles.
Advancing issues outnumbered declining ones on the NYSE by a 2.49-to-1 ratio; on Nasdaq, a 3.00-to-1 ratio favored advancers.
The S&P 500 posted 57 new 52-week highs and 1 new low; the Nasdaq Composite recorded 96 new highs and 44 new lows. (Reporting by Stephen Culp in New York Additional reporting by Devik Jain in Bengaluru Editing by Aditya Soni and Matthew Lewis)
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