Nasdaq, S&P Continue Setting Records

The Dow Jones also climbed, gaining nearly 1.4 percent to 28,308 following news the US Food and Drug Administration (FDA) had authorised use of an experimental Covid-19 treatment.

The S&P 500 jumped 1.0 percent to end the session at 3,431, while the Nasdaq rose 0.6 percent to 11,379, its third consecutive high point, bringing the tally for the year closer to 40 records.

Maris Ogg, portfolio manager at Tower Bridge Advisors, noted that while trading is quiet in late August, "We are slowly seeing the market broadening in terms of leadership, which is pretty healthy."

Shares got a boost after the FDA on Sunday issued an "emergency use authorisation" allowing doctors to administer plasma from people who have recovered from Covid-19 to treat new patients.

"Based on scientific evidence available, the FDA concluded this product may be effective in treating Covid-19 and that the known and potential benefits of the product outweigh the known and potential risks of the product in hospitalised Covid-19 patients," the agency said in a statement.

But Ogg noted that good news on a treatment was counteracted by worrying reports about coronavirus patients becoming reinfected.

"Covid is still very much rattling people," she said. "It will probably go on like this until we have a group of vaccines that people are confident in."

Apple continued its upward march, but retreated from the high point of the day, closing with a gain of 1.2 percent at US$503.43 ahead of a planned stock split.

Meanwhile, American Airlines surged 10.5 percent after announcing it was using a special anti-viral spray in its airplanes to combat Covid-19, and Delta Air Lines gained 9.2 percent after adding international flights. (AFP)