NEW YORK (AP) — Stocks rose across the board on Wall Street Wednesday following some encouraging, though very early results in developing a coronavirus vaccine. Rearchers said late Tuesday that one developed by the National Institutes of Health and Moderna revved up people’s immune systems in a preliminary test, as hoped. The S&P 500 rose 0.9% after being up as much as 1.3% during the morning. Small-company stocks rose much more than the rest of the market, a sign of of rising expectations for the economy. Cruise lines, hotels and other companies that would benefit greatly from the economy reopening rose sharply.
THIS IS A BREAKING NEWS UPDATE. AP’s earlier story appears below.
Wall Street is rising on Wednesday with hopes for a COVID-19 vaccine.
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 was 0.9% higher in its first day of trading since the announcement, after being up as much as 1.3% during the morning.
The Dow Jones Industrial Average was up 205 points, or 0.8%, at 26,856, as of 3:30 p.m. Eastern time. It also gave up much of an earlier gain, which had reached 428 points. The Nasdaq composite was up 0.6%.
The vast majority of stocks across the market remained higher despite the loss of momentum in midday trading, with more than four up for every one down.
The Russell 2000 index of small-cap stocks jumped 3.8%, an indication of rising expectations for the economy.
“Investors are gaining more confidence of the longer-term direction of the market," said Sam Stovall, chief investment strategist at CFRA. "It’s not just the behemoth tech stocks that are likely to lead share prices higher, but that mid- and small-cap stocks will also benefit, not only from an economic recovery, but also from very low interest rates.”
Stocks across Europe and much of Asia also climbed.
Moderna itself rose 8.1%, and the S&P 500 is back within 5% of its record after touching its highest level since February during the morning.
Companies that would benefit most from a return to normal life led the way, such as those that sell tickets for cruises, flights and concerts. Winners of the stay-at-home economy created by quarantines and lockdowns, meanwhile, lagged behind. Clorox and Netflix both fell.
Of course, the stock market has made other big jumps recently following encouraging data on other potential vaccines or treatments, only to fall back again as coronavirus counts keep climbing. Nearly two dozen possible COVID-19 vaccines are in various stages of human testing around the world, all of which still need to prove themselves.
On Wednesday, as Wall Street was losing its stride, Florida said it passed the 300,000 mark for confirmed coronavirus cases and announced another daily death toll of more than 100. Oklahoma’s governor, meanwhile, said he tested positive for the coronavirus.
They're the latest announcements to add to worries that worsening coronavirus trends across the U.S. South and West could snuff out the budding economic recovery that just got underway. The stock market has been largely churning in place for weeks, often swinging sharply within a single day, due to such concerns.
“People should be thinking about a balance of optimism and realism,” said Nela Richardson, investment strategist at Edward Jones.
She said there is a “long climb” to go for the economy’s reopening and pointed to other risks for the market, including U.S. trade tensions with China.
“We think it’s going to be a pretty bumpy road ahead,” she said.
Worries also remain high that the stock market has gone overboard in its rally: It has taken only months for the S&P 500 to nearly return to its record, when it could take years for the economy and corporate profits to get back to where they were before the pandemic struck. Less than four months ago, the S&P 500 was down nearly 34% from its record.
Markets nevertheless climbed Wednesday, bolstered by the optimism about a possible vaccine and encouraging reports on the economy and corporate earnings.
The nation's industrial production improved more in June than economists expected. So did manufacturing activity in New York state earlier this month.
Goldman Sachs rose 1.4% after it reported much stronger results than analysts expected. Financial stocks in general did well, with those in the S&P 500 up 1.9%.
Other areas of the market where profits are closely tied to the strength of the economy were also particularly strong.
Industrial stocks rose 2.7% for the biggest gain among the 11 sectors that make up the S&P 500. They included a 3.8% rise for General Electric and a 8.1% jump for Southwest Airlines.
Royal Caribbean Cruises leaped 20.4% for one of the largest gains in the S&P 500, leading a group of stocks that stand to gain if shoppers and travelers get back to life as it was before the pandemic. Live Nation Entertainment rose 11.2%, Gap jumped 12.5% and Hilton Worldwide added 9.5%.
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. Brent oil, the international standard, picked up 89 cents to settle at $43.79 per barrel.
AP Business Writer Elaine Kurtenbach contributed.
Copyright 2020 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed without permission.