NEW YORK (Reuters) - Wall Street gained ground on Monday and surging technology shares pushed the Nasdaq to a record closing high, as promising trial results from potential COVID-19 vaccines helped investors look beyond spiraling new cases of the disease.
Deaths in the United States from COVID-19 passed the 140,000 mark over the weekend, as cases continued to rise in 42 of 50 states.
Trials of potential vaccines have shown promise. Most recently, drugs from AstraZenica AZN.L, CanSino Biologics Inc 6185.HK and from a partnership between Pfizer Inc PFE.N and German biotech firm BioNTech BNTX.O were safely administered and induced immune responses.
“Developments on COVID, positive or negative, have become the new risk-on/risk-off binary trigger for the market,” said Joseph Sroka, chief investment officer at NovaPoint in Atlanta. “A year ago it was trade.”
“In the next few weeks there will start to be risk assessments made on how the size of the next round of financial stimulus,” Sroka added.
The U.S. Congress, still looking to mitigate the pandemic’s economic effects, was set for a week of partisan wrangling over a new relief package, with two weeks until enhanced jobless benefits expire for millions of Americans.
The Dow Jones Industrial Average .DJI rose 8.92 points, or 0.03%, to 26,680.87, the S&P 500 .SPX gained 27.11 points, or 0.84%, to 3,251.84 and the Nasdaq Composite .IXIC added 263.90 points, or 2.51%, to 10,767.09.
Second-quarter earnings season chugged along. Some 48 companies in the S&P 500 have posted results, with 77.1% of those beating consensus, according to Refinitiv data.
In aggregate, analysts now expect S&P 500 second-quarter earnings to have dropped 43.2% year-on-year, per Refinitiv.
Shares of Halliburton Co HAL.N rose 2.5% after the company posted a surprise adjusted quarterly profit and better-than-expected cash flow due to cost-cutting.
Chevron dropped 2.2%.
Moderna Inc MRNA.O shares tumbled 12.8% on positive results from its competitors' rival COVID-19 drug trials.
Electric automaker Tesla Inc TSLA.O rose 9.5% to reach a record closing high of $1,643.
Shares of International Business Machines Corp IBM.N were up over 5% in post-market trading after the company's adjusted earnings came in above analyst expectations.
Declining issues outnumbered advancing ones on the NYSE by a 1.09-to-1 ratio; on Nasdaq, a 1.11-to-1 ratio favored advancers.
The S&P 500 posted 41 new 52-week highs and no new lows; the Nasdaq Composite recorded 122 new highs and 12 new lows.
Volume on U.S. exchanges was 9.96 billion shares, compared with the 11.31 billion average over the last 20 trading days.
Reporting by Stephen Culp; Editing by David Gregorio
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