Stock futures traded sharply higher early Tuesday to begin a holiday-shortened week, as optimism grew about the reopening of the economy and a potential coronavirus vaccine.
Futures for Dow Jones Industrials jumped 518 points, or 2.1%, early Tuesday to 24,942.
Futures for the S&P 500 heightened 57 points, or 1.9%, to 3,010.
Futures for the NASDAQ Composite hiked 155.75 points, or 1.7%, to 9,562.
U.S. markets were closed Monday in observance of Memorial Day.
American biotech company Novavax said Monday it started the first human study of its experimental coronavirus vaccine. The company said it expects initial results on safety and immune responses in July.
Last week, another biotech Moderna reported positive development on its vaccine trial where all 45 participants had developed coronavirus antibodies. There are 10 vaccines in clinical evaluation and 114 in pre-clinical evaluation.
Economic activity continued to pick up as states begin opening up their economies. The biggest gainers in the pre-market were directly tied to the reopening. Carnival shares jumped 11%. MGM Resorts climbed 9%. United Airlines and Southwest Airlines rose 7% each.
The number of coronavirus cases in the U.S. topped more than 1.6 million as deaths rose to more than 97,000, a tally from Johns Hopkins University showed as of Monday.
Meanwhile, investors kept an eye on the U.S.-China tensions, which showed signs of escalation over the weekend. White House National Security Advisor Robert O’Brien said Sunday the U.S. will likely impose sanctions on China if Beijing implements national security law that would give it greater control over autonomous Hong Kong.
Overseas, in Tokyo, the Nikkei 225 regained 2.6%, Tuesday, while in Hong Kong, the Hang Sang index jumped 1.9%.
Oil prices gained 83 cents to $34.08 U.S. a barrel.
Gold prices dipped $10.80 to $1,724.70.
