US stocks rise and oil gains on hopes of new Covid-19 vaccine

Stocks linked to travel saw an increase while pandemic winners like Zoom and Peloton dipped

FILE PHOTO: The Wall Street sign is pictured at the New York Stock exchange (NYSE) in the Manhattan borough of New York City, New York, U.S., March 9, 2020. REUTERS/Carlo Allegri/File Photo

US stocks jumped on Monday and oil prices rose after drug-maker Moderna said preliminary trail data showed that its vaccine against coronavirus was 94.5 per cent effective.

The Dow Jones was up 1.03 per cent at 10:30pm UAE time, while the S&P 500 rose 0.81 per cent. The Nasdaq Composite Index recorded relatively modest gains, growing 0.26 per cent as tech stocks and other pandemic winners lost steam amid hopes of an economic recovery.

Travel-linked stocks such as American Airlines, Delta and cruise ship operator Carnival gained, while companies such as video communications app Zoom and Peloton - both of which benefited from changing work patterns amid the first wave of coronavirus - dipped 3.27 per cent and 0.49 per cent respectively.

Brent crude, the international benchmark, rose 2.76 per cent to $43.96, while West Texas Intermediate rose 3.02 per cent to $41.34 at 10:20pm UAE time as the positive news of a vaccine instilled hopes of rebounding economic activity.

Restrictions in movement led to a major fall in demand for energy earlier this year, plunging US crude into negative territory briefly in April. Crude prices has since recovered after Opec+, an alliance headed by Saudi Arabia and Russia, executed record cuts to balance oil supply to the market.

Moderna is the second company to reveal positive progress on vaccine trials. Last week, US pharmaceutical giant Pfizer said the inoculation it was trialling for Covid-19 proved more than 90 per cent effective against the virus.