Stocks rose on Wednesday, boosted by news of a coronavirus vaccine deal between the U.S. government and Pfizer and BioNTech and apparent progress on U.S. stimulus negotiations.
The Dow Jones Industrials ballooned 165.44 points to 27,005.84, the index’s third straight gain
The S&P 500 progressed 18.72 points to 3,276.02, posting a four-day winning streak, and reaching a five-month high.
The NASDAQ gained 25.76 points to 10,706.13.
Stocks got a boost in the final hour after sources told the media that Republicans are considering extending current unemployment benefits at $400 per month through December. That would be lower than the current unemployment benefits of $600 per week.
The U.S. State Department abruptly ordered China to close its consulate in Houston. Foreign ministry spokesperson Wang Wenbin condemned the action and warned of firm countermeasures if the U.S. does not reverse its decision. The closure comes as relations between the two largest World economies have deteriorated during the coronavirus pandemic.
However, market bearishness was kept in check after the U.S. agreed to pay Pfizer and German-partner BioNTech $1.95 billion to produce 100 million coronavirus vaccine if it proves to be safe and effective. The Department of Health and Human Services added the U.S. can acquire an additional 500 million doses of the drug under the agreement.
Pfizer rose more than 5%. BioNTech’s U.S.-listed shares gained 13.7%.
Traders also braced for the latest earnings reports from Microsoft and Tesla, which were set for release after the bell.
Microsoft has been one of the market stalwarts this year during the pandemic, surging more than 30% in that time period. Wall Street is also awaiting Tesla’s results, which could make the company qualify to become an S&P 500 constituent.
Other companies that have reported earnings include Snap and United Airlines. Shares of Snap dropped more than 6% after the social media company reported fewer-than-expected daily active users.
Shares of United Airlines dipped 4.2% after the company reported a net loss of $1.62 billion for the second quarter. The coronavirus pandemic’s impact on travel fueled an 87% year-over-year revenue decline for the Chicago-based airline.
Prices for the 10-Year Treasury eased by the closing bell, driving yields to back to Tuesday’s 0.60%. Treasury prices and yields move in opposite directions.
Oil prices slid three cents to $41.89 U.S. a barrel.
Gold prices thundered ahead 24 dollars to $1,867.90 U.S. an ounce.