US stocks and index ETFs jumped Monday, amid news of a highly effective coronavirus vaccine trials from Moderna, sending the Dow Jones hurtling toward 30,000 points.
The Dow Jones Industrial Average added almost 400 points, or 1.3%, while the S&P 500 advanced 0.91% and Nasdaq Composite climbed 0.54%.
Major stock ETFs are also breaking to higher ground on Monday. The SPDR Dow Jones Industrial Average ETF (DIA), SPDR S&P 500 ETF Trust (SPY), and Invesco QQQ Trust (QQQ) are all advancing just before 1PM EST.
Shares of the Moderna surged over 12% in premarket trading, and are still up over 7.5%. The iShares Nasdaq Biotechnology ETF (IBB) is gaining slightly on the news as well.
Moderna evaluated 95 confirmed coronavirus infections among the trial’s 30,000 participants, and said said 90 cases of the virus were seen in the placebo group versus the five cases discovered in the two-dose vaccine group. The estimated vaccine effectiveness was 94.5%. Moderna created its vaccine in collaboration with the National Institute of Allergy and Infectious Diseases, although it will not be widely available for months, and likely not until spring.
The biotech also noted that the vaccine was efficacious over a diverse group of participants. Of the 95 coronavirus cases, 20 participants identified as being from “diverse” communities, including 12 Hispanic people, four African Americans, three Asian Americans and one multiracial. Fifteen were adults over the age of 65.
Markets Looking on the Bright Side?
Investors and analysts are optimistic that this latest burst of vaccine data could help markets crest the recent explosion in coronavirus cases. The coronavirus infection has spread to more than 54.4 million people and killed more than 1.3 million, according to data compiled by Johns Hopkins University.
“It seems that investors are more focused on vaccine news and are willing to look past the near-term spike in cases,” he said in a post. “If this becomes a cause for concern for investors, it will become apparent on the charts and risk management will take over,” said Dan Russo, chief market strategist at Chaikin Analytics.