Finance

Dow gains more than 900 points on hopes for vaccine, quick rebound from COVID-19

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Stock closed with major gains Monday as Wall Street rallied on potential progress toward a COVID-19 vaccine and hopes of a quick economic rebound. 

The Dow Jones Industrial Average closed with a gain of roughly 912 points Monday, rising more than 3.8 percent, after biotechnology company Moderna announced it had seen “positive” results in early trials of a coronavirus vaccine. The company’s stock rose more than 20 percent on the news.

The Nasdaq composite closed with a gain of 2.4 percent, and the S&P 500 rose 3.1 percent.

The stock market has steadily gained ground after crashing in late February and early March despite the economy losing at least 21.4 million jobs in that time, sending the unemployment rate soaring to 14.7 percent. 

Traders have bet on the U.S economy recovering during the second half of 2020, even though public health officials and economists have warned that it may take a year or more for the industries most vulnerable to the pandemic to rebound.

Federal Reserve Chairman Jerome Powell warned Sunday night that the recovery from the pandemic-driven downturn may take until the end of 2021 and could depend on the widespread availability of a vaccine. Even so, his pledge to exert the Fed’s ample supply of ammunition to support the economy helped spur Monday’s rally.

Tags Coronavirus Dow Jones Industrial Average Jerome Powell Moderna Stock market Wall Street

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