The index finished 1.6%, or 471 points, up after interim data from a drug developed in the United States and produced by Moderna showed it was 94.5% effective against COVID-19[feminine[feminine, sparking hope in the battle to defeat the pandemic.
Earlier, London’s FTSE 100 had jumped 1.7%, or 105 points, with the French Cac 40 and Italian MIB recording similar rallies.
The Dow Jones record makes it the last of Wall Street’s three major indexes to regain all of the ground lost since February before the lockdowns put markets in free fall.
The larger New York S&P 500 and the highly technological Nasdaq had already recovered from losses since then.
Monday’s gains included travel titles such as United Airlines, up 5%, and tour operator Carnival, 10% ahead. Moderna shares rose 10%.
They came despite another rise in the number of coronavirus cases in the United States, prompting some states to tighten social distancing rules.
Robert Pavlik, senior portfolio manager at Dakota Wealth, said: “Wall Street is looking six to 12 months later.
“There is a question about… what kind of damage will be inflicted on the economy by then. “
Moderna’s announcement was another boost for the markets after a positive update from Pfizer last week big bounce, including for companies – notably in the aviation sector – which have been most affected by the restrictions in the event of a pandemic.
They were again ahead of the latest test data – with London-listed International Airlines Group, owner of British Airways, Iberia and Aer Lingus, among the largest FTSE 100 lifters with a 10% gain.
Aircraft engine maker Rolls-Royce also rose 10%, as did Whitbread, owner of Premier Inn hotels, while oil giants Royal Dutch Shell and BP each rose about 6%.
Elsewhere, Cineworld rose nearly 14%, while Primark’s owner, Associated British Foods, climbed 4%.
Notable FTSE declines include companies that saw increased demand during the pandemic, such as online grocery specialist Ocado – down 4% – and restaurant delivery platform Just Eat Takeaway – down by 3%.
The rebound of the FTSE 100 saw it reach levels last seen in June – since when it was dragged lower by concerns about a second wave of cases and further lockdowns.
But unlike Wall Street’s Dow Jones, London’s blue chip index remains well below levels seen earlier this year before the pandemic hit.
Commenting on the significance of Moderna’s results, analysts at Shore Capital pointed out that it could be stored for up to 30 days in household refrigerators – whereas the Pfizer vaccine must be stored at -70 ° C.
“This is a very important development of Moderna and will greatly simplify the vast logistical effort that will be required to coordinate this mass vaccination campaign,” analysts said.
Susannah Streeter, Senior Investment and Markets Analyst at Hargreaves Lansdown, said: “Another big dose of positive vaccine news has rocketed the FTSE 100 as investors see the light at the end of the coronavirus tunnel that shines even brighter.
“This is the first data and the Moderna vaccine will likely not be approved for at least a few weeks, but the announcement adds to the confidence that is crossing the financial markets. ”
Michael Hewson, chief market analyst at CMC Markets, said: “The more companies there are capable of developing a candidate vaccine that can be demonstrated to be effective, the more optimistic investors will be able to see a way out. of this pandemic.
Restrictions imposed by governments to curb the spread of the virus have crushed economic activity, with retail, hospitality and aviation being the sectors most affected, according to a track of job losses from Sky News during the pandemic.
The UK suffered its worst recession on record in the first half of the year as the initial lockdown took its toll.
Figures from last week showed a strong rebound in GDP in the third quarter, but also revealed that the pace of the recovery was slowing even before the last foreclosure in England – which is expected to send the economy back into reverse for the end of the year.
They also showed that the UK has been slower to recover than other economies such as the US, with UK GDP at the end of the period still 9.7% lower than in December 2019 .
The impact on employment has also been marked and seems likely to worsen, with a record number of layoffs across the UK during the period July to September.