NEW YORK (AP) — Markets worldwide rallied Wednesday, buoyed by rising hopes for a COVID-19 vaccine as well as a heartening report on growing industrial production.
Investors see a vaccine as the best way for the economy and human life to get back to normal, and researchers said late Tuesday that one developed by the National Institutes of Health and Moderna revved up people's immune systems in early testing, as hoped. The S&P 500 rose 0.9% to pull within 4.7% of its all-time high set in February.
The Dow Jones Industrial Average climbed 0.9% and the Nasdaq composite gained 0.6%.
Several things helped lift the market, including stronger-than-expected reports on the economy and on corporate profits from Goldman Sachs and others. But the vaccine hopes were at the center of the rise, which meant the market's leaderboard was dominated by companies that would benefit most from a return to normal life. They included cruise-ship operators, airlines, retailers and hotel chains.
The Russell 2000 index of small-cap stocks jumped 3.5%, a turnaround from earlier months when big, tech-oriented companies were carrying the market.
The nation’s industrial production improved more in June than economists expected. So did manufacturing in New York state earlier this month.
Other areas of the market where profits are closely tied to the strength of the economy were also particularly strong. Industrial stocks rose 2.6% for the biggest gain among the 11 sectors that make up the S&P 500, and energy producers gained 2%.
The yield on the 10-year Treasury rose to 0.63% from 0.61% late Tuesday. It tends to move with investors’ expectations for the economy and inflation.
Benchmark U.S. crude oil rose 91 cents to settle at $41.20 per barrel.
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