By Yasin Ebrahim
Investing.com – The S&P 500 and Nasdaq closed at record highs as tech continued to rack up gains, while positive coronavirus vaccine news fueled a rally in pandemic-pressured sectors of the market.
The Dow Jones Industrial Average rose 1.36%, or 378 points. The S&P 500 and Nasdaq Composite rose 1.05% and 0.60%, respectively, to close at all-time highs.
Signs the U.S. is stepping up efforts in its fight against the coronavirus pandemic eased investor worries about the pace of the recovery.
The Trump administration is reportedly considering a push for an emergency use authorization for AstraZeneca (NYSE:AZN)'s potential coronavirus drug ahead of the U.S. election in November.
Also helping sentiment, the U.S. Food and Drug Administration granted emergency authorization for the use of convalescent plasma as a treatment for patients hospitalized with the virus.
Positive virus treatment news sent cyclical sectors like energy and financials sharply higher, lifting the broader market.
Energy was also helped by a rise in oil prices as oversupply worries eased after more than half of U.S. production in the Gulf of Mexico was temporarily taken offline ahead of two tropical storms this week.
Tourism and travel sectors, which have acute exposure to the pandemic, also trended higher, with airlines and cruise lines among the biggest gainers.
Carnival (NYSE:CCL) and American Airlines (NASDAQ:AAL) added 10%, while Wynn Resorts (NASDAQ:WYNN) and Expedia (NASDAQ:EXPE) closed up more than 4%.
Tech also played a role in the rally on Wall Street with Apple (NASDAQ:AAPL) in focus after closing a record high ahead of its four-for-one stock split.
Morgan Stanley (NYSE:MS) lifted its price target on Apple to a Street high of $520 from $431.
Tesla (NASDAQ:TSLA), meanwhile, closed 1.7% lower after giving up intraday gains.