US Market scales new highs on potential coronavirus treatment

The US stocks finished session higher on Monday, 24 August 2020, with the Nasdaq and the S&P 500 scaled new highs, as the U.S. Food and Drug Administration's approval for the emergency use of blood plasma in COVID-19 patients treatment and the speeding up of a vaccine candidate buoyed investors' optimism about a potential treatment for coronavirus and bets of a quicker economic recovery.

At closing bell, the Dow Jones Industrial Average index advanced 378.13 points, or 1.35%, to 28,308.46. The S&P 500 index added 34.12 points, or 1%, to 3,431.28. The tech-heavy Nasdaq Composite Index rose 67.92 points, or 0.6%, to 11,379.72.

 

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%.

Aiding market sentiment was a report the Trump administration is considering fast-tracking an experimental COVID-19 vaccine developed by AstraZeneca Plc and Oxford University for use in the United States ahead of the nation's upcoming presidential election.

Apple shares rose 1.2% to lead other tech-related names higher. Facebook climbed 1.6% and Amazon advanced 0.7%. Alphabet rose 0.6%.

Shares of airlines and cruise operators gained amid positive coronavirus treatment developments. United Airlines rose by more than 9% along with American. Delta gained 9.3%. Carnival advanced 10.2%. Norwegian Cruise Line and Royal Caribbean closed higher by 7.6% and 4.7%, respectively.

Among Indian ADR, WNS Holdings added 1.99% to $67, INFOSYS added 1.51% to $12.79, Vedanta rose 0.44% to $6.90, Wipro rose 1.18% to $4.27, Tata Motors grew 1.48% to $8.24. ICICI Bank was up 2.06% to $10.38, HDFC Bank was up 2.71% to $49.71, and Dr Reddys Labs rose 0.1% to $60.10. Azure Power Global fell 3.73% to $21.96.

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