U.S. stocks are soaring on potential vaccine, reopening optimism

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Dow up more than 800 points as Wall Street surges on hopes for stimulus, coronavirus vaccine

Stocks jumped after an experimental vaccine showed promising early signs of helping to fend off the new coronavirus. Crude oil advanced and yields on Treasuries rose.

The Dow Jones Industrial Average were up 715.03 points, or 3 per cent, in early trading to 24,400.45. The S&P 500 rose 71.13 points, or 2.48 per cent, at 2,934.83. The Nasdaq Composite gained 179.45 points, or 1.99 per cent, to 9,194.01. In Canada, the TSX was closed for the Victoria Day holiday. “Powell addressing that the Fed is not out of ammo combined with positive vaccine trial data has set the markets off to the races,” said Matt Miskin, co-chief investment strategist at John Hancock Investment Management. “It just shows that sentiment can change so quickly in times like these.”

Investors begin a new week more positive on risk assets and looking past data that paints a dismal picture of the coronavirus’s damage. While Federal Reserve Chairman Jerome Powell said the U.S. economy’s recovery could stretch to the end of 2021, he added that policy makers are “not out of ammunition by a long shot.” Several European countries ended bans on short selling, as they continued to report the lowest number of daily deaths from the virus since March.

 

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