A child wearing a face mask sits on the Charging Bull statue, also known as the Wall Street Bull, following the outbreak of the coronavirus disease (COVID-19) in New York, August 19, 2020.
Carlo Allegri | Reuters
Stock futures rallied in early trading on Monday as Wall Street tries to build on a record-setting week. Gains in tech shares and some developments on coronavirus treatments were behind the bullish sentiment.
Futures on the Dow Jones Industrial Average rose 270 points, or about 1%. The move indicated an opening gain of more about 260 points. S&P 500 futures added 0.8%. Nasdaq-100 futures gained 0.9%.
Apple shares rose 2% in premarket trading. Amazon and Microsoft shares were also higher.
On Sunday, the U.S. Food and Drug Administration issued an emergency use authorization of convalescent plasma for hospitalized Covid-19 patients, a treatment that uses blood plasma donated by people who’ve recovered from the virus.
President Donald Trump said at a news conference Sunday that the plasma treatment cuts the mortality rate by 35%.
The Trump administration is also considering fast-tracking an experimental coronavirus vaccine developed in the U.K. for use in the United States ahead of the nation’s upcoming presidential election, according to a Financial Times report.
Shares of casinos and airlines gained in premarket trading amid the coronavirus treatment developments.
A seemingly unstoppable rally in major technology shares last week pushed the S&P 500 to levels above its previous record set before the pandemic. The broad equity benchmark posted its fourth straight positive week and closed at a fresh record on Friday.
Apple jumped more than 8% last week ahead of its 4-for-1 stock split, bringing its 2020 gains to nearly 70%. Those gains were continuing in premarket trading.
The tech-heavy Nasdaq Composite gained 2.6% last week, posting a six-week winning streak and notching its 36th intraday high. The Nasdaq has gained 26% this year.
The 30-stock Dow, however, is still about 5% below its record high from February as many of its consumer discretionary and industrial constituents have yet to fully recover from the unprecedented sell-off earlier this year.
Investors remained on high alert for updates on the coronavirus pandemic as the world attempts to ease restrictions and revive economic growth.
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