Dow closes 835 points higher after hitting intraday record on Pfizer vaccine enthusiasm
Dow Jones industrial averageand S&P 500 closed sharply higher on Monday after hitting intraday records earlier in the session.
- Major US indexes were lifted bynews that Pfizer and BioNtech successfully developed a COVID-19 vaccine that demonstrated an efficacy rate of more than 90%.
- The development is thought to remove significant uncertainty from the market as investors see a light at the end of the COVID-19 pandemic tunnel.
- While cyclical
stocksin the airline, restaurant, and financial sectors soared, popular work-from-home names like Zoom, Peloton, and Netflix plummeted.
- Watch major indexes update live here.
Progress in the development of a COVID-19 vaccine was all investors need to hear to help propel stocks to hit new heights on Monday.
Both the S&P 500 and the Dow Jones industrial average closed sharply higher after Pfizer and BioNTech announced that their COVID-19 vaccine was found to be more than 90% effective in preventing the illness during its phase-three trial, setting it up for an emergency rollout. Both indexes surged to intraday records during the session.The drugmakers said no serious safety concerns had been observed throughout the trial, which enrolled about 44,000 patients.
Here's where US indexes stood at the 4 p.m. ET close on Monday:
- S&P 500: 3,550.50, up 1.2%
- Dow Jones industrial average: 29,157.97, up 3% (835 points)
- Nasdaq composite: 11,713.78, down 1.5%
The vaccine-progress news rippled through various areas of the
But technology stocks that saw a surge in business due to the COVID-19 pandemic didn't participate in Monday's jump higher.Work-from-home stocks suffered on the news, as people are more likely to spend less time at home and get back to offices once the COVID-19 pandemic is in the rearview mirror. Zoom, Peloton, DocuSign, and Netflix cratered on Monday.
Elsewhere, Biogen plummeted 32% after a Food and Drug Administration advisory committee signaled that its Alzheimer's therapy would not receive approval early next year.
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