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Dow rises 230 points as investors react to encouraging vaccine news

Carmen Reinicke   

Dow rises 230 points as investors react to encouraging vaccine news

  • US stocks rose Wednesday as investors reacted to positive coronavirus vaccine news.
  • Shares of Moderna spiked after President Trump announced the US government will by 100 million doses of its coronavirus vaccine.
  • Tesla shares gained after the company announced a five-for-one stock split.
  • Oil prices climbed after a report suggested that American crude stockpiles shrank last week.
  • Read more on Business Insider.

US stocks rose on Wednesday as investors reacted to positive coronavirus vaccine news.

Shares of Moderna spiked after President Donald Trump said Tuesday that the US government will buy 100 million doses of its COVID-19 vaccine candidate as a part of its Operation Warp Speed program. Moderna's vaccine is in late-stage human trials.

Meanwhile, Tesla rose after the company announced on Tuesday it will enact a five-for-one stock split on its shares, making it more affordable for investors.

Here's where US indexes stood at 12:00 p.m. ET on Wednesday:

Read more: The CEO of an $815 million ETF provider explains how to build the perfect portfolio for today's market using just 3 low-cost funds

Technology giants such as Amazon, Apple, Facebook, and Microsoft rose Wednesday, reversing weakness from a day earlier and leading the market higher.

Investors also continued to watch for signs of progress in lawmakers negotiations on the next coronavirus stimulus relief package. On Monday, Treasury Secretary Steven Mnuchin said the White House is open to further talks with Democrats, but on Tuesday, Senate Majority Leader Mitch McConnell said talks had reached a stalemate.

Market sentiment may have also been lifted by Democratic presidential candidate Joe Biden's announcement of Sen. Kamala Harris as his running mate. Markets seem comfortable with Harris on the ballot, according to Allison Schrager, a senior fellow at the Manhattan Institute.

US consumer prices increased in July by o.6%, the Labor Department reported Wednesday, more than the 0.3% gain that economists expected. Gold rebounded Wednesday after falling the most in 7 years on Tuesday.

Read more: Former hedge-fund titan Michael Novogratz breaks down 4 reasons why bitcoin is heading to $20,000 by year-end

Elsewhere, the UK officially fell into a recession for the first time in 11 years after its gross domestic output slumped 20.4% between April and June due to shutdowns to contain COVID-19.

Oil climbed after a report suggested that American crude stockpiles shrank last week. West Texas Intermediate crude gained as much as 2.4%, to $42.59 per barrel. Brent crude, the international benchmark, rose 2.1%, to $45.42 per barrel, at intraday highs.

Read more: GOLDMAN SACHS: These 24 single-stock trades can help you make big returns in August as the pandemic creates a wildly unpredictable back-to-school season

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