Vaccine Boost Sees Dow, S&P Hit Records

All three major US stock indexes advanced and with its new closing record, the blue-chip Dow is the last of the three to reclaim levels reached in February, before lockdowns sent the markets into free-fall.

Value, cyclical and small cap shares outperformed the broader market.

Moderna said its experimental Covid-19 vaccine was 94.5 percent effective in preventing infection based on interim late-state data. It was the second drugmaker in as my weeks, after Pfizer, to announce promising trial data in the development of a vaccine to defeat the pandemic. Its shares gained 9.6 percent on the day.

Combined, pending further data and regulatory review, the United States could have as many as 60 million emergency doses available this year.

"More vaccine news is driving cyclicals, small caps and value, which would be primed if the economy reopens sooner than expected, returning us to some sense of normalcy," said Robert Pavlik, senior portfolio manager at Dakota Wealth in Fairfield, Connecticut.

Travel-related stocks, which have been clobbered by restrictions to contain the pandemic's spread, were in demand.

But Covid-19 continued its US rampage, with cases surging past 11 million and record infections in 40 states, prompting states to tighten social distancing mandates.

"Wall Street is looking out six to 12 months down the road," Pavlik added. "There is a question about ... what kind of damage will be inflicted on the economy between now and then."

The Dow Jones Industrial Average rose 1.6 percent to 29,950; the S&P 500 gained 1.16 percent at 3,627; and the Nasdaq Composite added 0.8 percent, at 11,924. (Reuters)