Stocks rise sharply on hopes of progress in battling virus

Stocks around the world jumped Monday after some of the hardest-hit areas offered sparks of hope that the worst of the coronavirus outbreak may be on the horizon.

US stocks were up roughly 5% in midday trading, following up on gains that were nearly as big in Europe and Asia. In another sign that investors are feeling more optimistic about the economy's path, the yield on the 10-year Treasury rose toward its first gain in four days.

New coronavirus infections and deaths are showing signs of slowing in Italy and Spain. The center of the U.S. outbreak, New York, also reported a dip in the number of daily deaths, though authorities warned it's too early to tell whether it's just a blip or the start of a trend. The U.S. is still bracing for a surge of upcoming deaths due to COVID-19.

The S&P 500 was up 4.9%, as of 11:45 a.m. Eastern time. Gains were widespread, and all but 15 stocks in the S&P 500 were higher. The index is on pace to more than recover all its losses from the prior week, when the government reported a record number of layoffs sweeping the economy.

The Dow Jones Industrial Average rose 1,043 points, or 5%, to 22,096, and the Nasdaq was up 4.9%.

Markets have been waiting anxiously for signs that the rate of new infections may stop accelerating. The explosion of cases has caused businesses around the world to shut down, layoffs to soar and flights to cancel as authorities hope to slow the spread of the virus. The strict measures mean markets are bracing for a sudden, steep recession.