Stock futures rose on Tuesday's night trade after Moderna announced in an early study that its coronavirus vaccine was producing antibodies in all patients, hoping for a faster economic recovery.
Futures on the Dow Jones Industrial Average rose 250 points, pointing to a gain of 220 points on Wednesday's opening. The S&P 500 futures and the Nasdaq 100 futures rose 0.5% and 0.3%, respectively.
Biotech Moderna's potential vaccine for the prevention of Covid-19 generated a "robust" immune response or neutralizing antibody in all 45 patients in its early human study. This emerges from newly published data published on Tuesday evening in the peer-reviewed New England Journal of Medicine.
Moderna's shares rose more than 16% on Tuesday after the close of trading. Shares directly linked to an economic reopening rose after the vaccine news. American Airlines, United Airlines and Royal Caribbean Cruise each grew by more than 4% in expanded trade.
"This should further increase confidence that we will have a robust immune response because the confidence that this will protect Covid transmission to some extent should be greater," said Michael Yee, managing director of Jefferies, about CNBC's "Fast Money." "This is all combined with our positive thesis and our view that both Moderna and Pfizer-BioNTech are definitely on the right track to get a vaccine by the end of the year."
The shares ended Tuesday's volatile session at a high level. The Dow jumped more than 500 points to mark its best day in two weeks. The S & P 500 rose 1.3%, reflecting cyclical names that are responding to the economic recovery. The tech-heavy Nasdaq underperformed on a second day, rising 0.9% as the massive rally in big tech slowed.
Investors will monitor another series of corporate results on Tuesday. Goldman Sachs, UnitedHealth, the Bank of NY Mellon, U.S. Bancorp and PNC Financial will report before the bell.
Large banks' earnings have so far been mixed. JPMorgan Chase reported better than expected quarterly results due to a massive surge in trading sales. Wells Fargo suffered a loss of $ 2.4 billion and lowered the dividend to 10 cents per share.
Meanwhile, tensions between the United States and China continue to increase. President Donald Trump said on Tuesday that he had signed laws to sanction China in response to its interference with Hong Kong's autonomy.
– CNBC's Jesse Pound contributed to the reporting.
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