The stock market bounced back from its worst week in nearly two months Monday as optimism about a potential vaccine for the coronavirus and hopes for a US economic recovery in the second half of the year put investors in a buying mood. The S&P 500 climbed 3.2%, its best day since early April. The gains erased all of its losses from last week, when the index posted its worst showing since late March and its third weekly loss in the last four. Bond yields rose broadly in another sign that investors were becoming more optimistic. The Dow Jones Industrial Average gained 963 points, or 4.1%, to 24,649. The Nasdaq composite climbed 2.7%. Small-company stocks fared better than the rest of the market. The Russell 2000 index rose 5.8%.
Stocks were already headed for a higher opening on Wall Street when a drug company announced encouraging results in very early testing of an experimental coronavirus vaccine, the AP reports. The stock of the company, Massachusetts-based Moderna, jumped 20%. Investors are hoping that a working vaccine for COVID-19 can be developed and that it will help reassure people and businesses as the economy reopens. Technology, financial, and industrial stocks accounted for a big slice of the broad gains, along with companies that rely on consumer spending. Energy stocks also rose as the price of U.S crude oil closed above $30 a barrel for the first time in two months.
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