Stocks soared on Monday — as the S&P 500 opened up3.6% higher, while the Dow jumped over 5%,or 1,443 points — after Pfizer announced promising, though early, findings about the effectiveness of its coronavirus vaccine.
The state of play: The vaccine progress is fueling market optimism about a possible return to normal, as the coronavirus pandemic and resultant social-distancing restrictions have held back the U.S. economy.
- Pre-market trading already pointed to a continuation of last week's election-fueled rally, but stocks really skyrocketed once the Pfizer news hit.
Between the lines: Companies whose businesses have been crushed by the pandemic saw their share prices jump.
- AMC, the world's largest movie theater chain, saw its stock jump more than 50% on Monday morning. American Airlines and United both jumped 20%.
The other side: Companies benefiting from the stay-at-home economy sold off. Shares of video-conferencing software Zoom fell 19%.
- The tech stocks that pushed the market higher in recent months were also lower, and the tech-heavy Nasdaq saw much more muted gains (1.2%) relative to the S&P and Dow.
Of note: Markets across Europe also shot higher.
- The STOX 600 rose as much as 4%, putting it on pace for its best day in six months, per Reuters.