U.S. stock futures rose on positive study results from another potential Covid-19 vaccine, with the S&P 500 set to open higher after ending last week at a record level.
Futures tied to the S&P 500 jumped 1.1%. Contracts tied to the Dow Jones Industrial Average climbed 1.7%.
Moderna shares jumped more than 10% in premarket trading. Companies that stand to benefit from the reopening of the economy also climbed, with
United Airlines Holdings
rising 7% and cruise operator Royal Caribbean Group up 5.4%.
Investors have recently been buoyed by the prospect of more positive news on coronavirus shots, which could signal a return to greater economic normality. News of a successful trial from
and BioNTech jolted markets last week.
A stock-market rally could prove choppy as investors ascertain how long it may take for the economy to benefit from a successful vaccine.
“It doesn’t look like a stable rally, it doesn’t look like a low volatility rally, it very much looks like one where we’re going to see lots of ups and downs,” Mr. Athey said.
Simon Property Group Inc.
rose 6.9% in premarket trade after mall developer Taubman Centers agreed to accept a price cut in its takeover by the company. That will allow the two firms to avoid a drawn-out legal battle that was set to start Monday.
The pan-European Stoxx Europe 600 rose 1.4%, led by shares in banks and other sectors hard hit by the pandemic, such as oil and travel.
Shares in Spanish lender
rose 15% after
PNC Financial Services Group
agreed to buy its U.S. arm for $11.6 billion.
Banco de Sabadell
jumped 13% on speculation that the sale could make it a BBVA takeover target.
Last week, investors shunned tech stocks that have benefited from consumers spending more time at home, instead favoring companies that would benefit from the reopening of the economy.
“There is a fundamental reason why equities are rising, which is a recovery that seems to be pretty solid, the prospect of more stimulus, and also the vaccine,” said Luca Paolini, chief strategist at Pictet Asset Management.
Though questions remained about the efficacy and distribution of a vaccine, and investors are perhaps overly exuberant in the short term, “for next year, everything seems to be actually moving in the right direction,” Mr. Paolini added.
Health experts say having a vaccine is just one front in a two-front battle against Covid-19. The other is effective treatments for those who are already sick with the disease. WSJ breaks down the three most promising types in development.
The U.S. reported more than a million coronavirus infections for the past week, including more than 133,000 Sunday, as the national total surpassed 11 million. The country also set a record for hospitalizations, with 69,987 reported Sunday, according to the Covid Tracking Project.
Commodities rallied after strong economic data out of China and Japan pointed to healthy demand for industrial metals. Chinese industrial production rose 6.9% in October from a year earlier. Gross domestic data showed Japan’s economy grew by its fastest pace in 40 years in the third quarter.
Copper jumped 2% to its highest level since June 2018. Brent crude, the international benchmark for oil, rose 3.7% to $44.35 a barrel.
Asian stocks benefited from the signing of a major trade deal that includes China, Japan, South Korea and 12 other countries. The regional bloc covers around a third of global economic output.
Japan’s Nikkei 225 rose 2.1% to log a fresh 29-year high. Indexes in Taiwan and South Korea rose by similar amounts to hit multiyear highs or records. Chip makers Samsung Electronics and
Taiwan Semiconductor Manufacturing Co.
, both major constituents of their local indexes, each rose more than 4%. The Shanghai Composite climbed 1.1%.