Dow Surges 288 Points on Vaccine Optimism, Big Tech Rebound

The Dow Jones Industrial Average spiked on Monday, as investors reacted to positive developments around a Covid-19 vaccine and a potential TikTok partnership in the U.S.

After a painful correction, Big Tech is leading U.S. stocks higher again. The Dow rose nearly 200 points at Monday's open. | Image: Spencer Platt/Getty Images/AFP

  • The Dow Jones Industrial Average rose nearly 300 points on Monday.
  • Shares of Oracle Corporation spiked 7% on reports that the company had secured TikTok’s U.S. operations.
  • Pharmaceutical giant AstraZeneca announced Saturday that it had resumed late-stage Covid-19 vaccine trials in the U.K.

The Dow and broader U.S. stock market traded sharply higher on Monday, as investors rallied behind positive developments concerning a Covid-19 vaccine candidate. A sharp recovery in Big Tech shares also aided in the rally.

Dow, S&P 500, Nasdaq Surge

All of Wall Street’s major indexes opened higher, reflecting a strong pre-market session for U.S. stock futures. The Dow Jones Industrial Average gained as much as 288 points or 1%.

The Dow Jones Industrial Average came within 47 points of 28,000 on Monday. | Chart: Yahoo Finance

Apple was the Dow’s biggest gainer Monday, followed closely by Visa and American Express.

The broad S&P 500 Index of large-cap stocks surged 1.4%, with all 11 primary sectors reporting gains.  The S&P 500’s information technology index surged 2.2%. Financials, consumer discretionary, and communication services also rose sharply.

Surging tech shares fueled a sharp rally in the Nasdaq Composite Index, which rose 1.9%. The tech-heavy index is once again trading above 11,000.

Vaccine Optimism Builds

The Nasdaq’s Biotechnology Index spiked 3.5% Monday morning after AstraZeneca reported that it had resumed late-stage vaccine trials with the University of Oxford in the United Kingdom.

Biotechnology stocks are among the biggest gainers Monday. | Chart: Yahoo Finance

On Sept. 6, AstraZeneca paused its Covid-19 trials to “allow [a] review of safety data by independent committees.” Following its investigation, the U.K.’s Medicines Health Regulatory Authority concluded that trials are safe to resume. Watch the video below for more:

Oracle Lands TikTok’s U.S. Operations: Reports

Shares of Oracle Corporation rose by as much as 7% Monday following reports that the company had secured a partnership with ByteDance to run TikTok’s U.S. operations.

Oracle’s stock price exploded on Monday. | Chart: Yahoo Finance

Microsoft–long considered to be the frontrunner in acquiring TikTok’s U.S. business–announced Sunday that the Chinese-owned video app company rejected its bid.

As Yahoo Finance reports:

A deal between TikTok owner ByteDance Ltd. and Oracle will look more like a corporate restructuring than the outright sale Microsoft had proposed…

Oracle secured the deal a week before the White House was set to ban TikTok over national security concerns.

Last modified: September 23, 2020 2:31 PM

Sam Bourgi: Financial Editor of CCN.com, Sam Bourgi has spent the past decade focused on economics, markets, and cryptocurrencies. His work has been featured in and cited by some of the world's leading newscasts, including Barron's, CBOE, Yahoo Finance, and Forbes. Sam is based in Ontario, Canada and can be contacted at sam.bourgi@ccn.com or at LinkedIn.