U.S. markets and stock exchange traded funds rallied, with the S&P 500 and Nasdaq at record highs, after regulators approved the emergency use of blood plasma in coronavirus patients, fueling hopes of a treatment to alleviate the economic uncertainty.

On Monday, the Invesco QQQ Trust (NASDAQ: QQQ) was up 0.5%, SPDR Dow Jones Industrial Average ETF (NYSEArca: DIA) was 1.0% higher and iShares Core S&P 500 ETF (NYSEArca: IVV) rose 0.7%.

The U.S. Food and Drug Administration approved the use of convalescent plasma or antibody-rich plasma from recovered patients for the treatment of serious coronavirus cases, Reuters reports.

“The market is responding favorably to the possibilities of being able to inject antibodies as another form of combating the virus,” Sam Stovall, chief investment strategist at CFRA Research, told Reuters.

The World Health Organization, though, was cautious about endorsing the treatment, warning of “low quality” evidence in its efficacy. The emergency-use authorization falls short of a full approval, according to FDA Commissioner Stephen Hahn.

“Any news that’s positive on the virus is going to drive markets higher,” Seema Shah, chief strategist at Principal Global Investors, told the Wall Street Journal. “However, any news on a vaccine or treatment has to be treated with skepticism, given the process it has to go through before it’s used by the general population.”

Further adding to the Covid-19 vaccine optimism, a report showed the Trump administration is considering fast-tracking an experimental Covid-19 vaccine developed by AstraZeneca Plc and Oxford University before the presidential election.

The ongoing rally in the equity markets may reflect investors’ growing optimism over the economic or the belief that we at the very least crossed over the worst of the economic pain, with corporate earnings soon to begin rising again next year. Jim Paulsen, chief investment strategist at the Leuthold Group. pointed out that markets have typically rebounded before the broader economy and have historically generated the best performance as unemployment rates declined from the peak.

“Strong odds in my opinion that we are in a new economic expansion and a new bull market,” Paulsen told the WSJ.

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