May 18, 2020 at 7:34 a.m. MDT
U.S. markets were poised for recovery Monday as good news out of Moderna’s coronavirus vaccine trials spurred optimism in investors, with the Dow jumping nearly 700 points, or 3 percent, at opening bell.
Biotechnology company Moderna reported Monday that early human trials for its coronavirus vaccine successfully produced covid-19 antibodies in all participants. The company plans to launch a large clinical trial in July aimed at showing whether the vaccine works. Moderna’s shares soared 30 percent in early trading.
Investors also found comfort in comments Federal Reserve chair Jerome H. Powell made during a “60 Minutes” interview. He said the central bank is “not out of ammunition by a long shot” in its resources to support the economic recovery — which he warned could stretch into 2021.
David Rosenberg, chief economist of Rosenberg Research, said investors were being rewarded with a “triple whammy of good news” after two weeks of flux.