U.S. stocks rose to records after positive news on a Covid-19 vaccine sparked a rally in shares tied to an economic reopening while stay-at-home tech companies lagged behind. Oil climbed.
The Dow Jones Industrial Average and S&P 500 Index closed at all-time highs after Moderna Inc.’s vaccine was shown to be 94.5% effective in a preliminary analysis of a large late-stage clinical trial. Shares of the drugmaker surged almost 10%. Companies poised to benefit from a reopening, such as cruise lines and air carriers, were among the day’s best performers.
Lockdown favorite Zoom Video Communications Inc. slumped along with other at-home tech names, weighing on the Nasdaq 100.
The vaccine news adds yet another driver to a global stocks rotation into value and cyclical sectors that have been hardest hit by the pandemic, and out of more defensive industries like technology. Advisers to President-elect Joe Biden said they opposed a nationwide shutdown despite surging virus cases.