US stocks rose sharply Monday, on pace to hit new record highs, after Moderna said that its experimental Covid-19 vaccine is highly effective.
That heralded another breakthrough in the fight against coronavirus that could eventually help the world's biggest economies recover from deep recessions.
Moderna said in a statement that the first interim analysis of Phase 3 trial results showed its vaccine candidate was 94.5% effective against the coronavirus.
Last week, Pfizer said that a vaccine it developed with German drug maker BioNTech was more than 90% effective against Covid-19.
There are dozens more potential vaccines in development, and the promising test results from Moderna and Pfizer suggest that vaccines may be an effective way to fight the coronavirus. Both vaccines require two doses to be administered.
US stocks rose after Moderna announced the results. The Dow added 1.2%, or 330 points. The S&P 500 increased 0.75% and the Nasdaq was flat. Shares in Moderna were up 11%.