S&P, Nasdaq Composite hit records as Pfizer vaccine gets FDA approval

Aug. 23 (UPI) -- U.S. markets hit record highs on Monday after the Food and Drug Administration granted full approval to Pfizer's COVID-19 vaccine.

The S&P 500 climbed 0.85% and the Nasdaq Composite surged 1.55% as both indexes hit record highs. The Dow Jones Industrial Average gained 215.63 points, or 0.61%.

Pfizer stock gained 2.47% and its German partner BioNTech climbed 9.58% after the FDA made their jointly developed vaccine the first in the United States to receive the agency's highest mark of approval.

Trillium Therapeutics stock also skyrocketed 189% after it was announced Pfizer would acquire them.

Fellow U.S. vaccine maker, Moderna, also saw shares rise 7.55%.

Travel stocks also rose following the news with American Airlines stock gaining 3.3% and Delta increasing 2.86% while Norwegian Cruise Line stock climbed 4.25% and Carnival closed the day up 3.96%.

U.S. West Texas Intermediate crude oil futures climbed above $64 a barrel, while Brent crude rose above $67 per barrel driving Occidental Energy stock up 6.88%, while Devon Energy rose 6.07% and Diamondback Energy climbed 5.9%.

The three major U.S. markets bounced back Monday following a losing week which saw the Dow fall 1.1%, the S&P 500 drop 0.6% and the Nasdaq slide 0.7%.

"Markets may take a breather after their recent run, but strong Q2 results have provided a fundamental justification and reinforced our confidence in the sustainability of the recovery," Barclays said.

The S&P is up 1.1% so far in the month of August, while the Dow has risen 0.5% and the Nasdaq gained 0.3%.

"August is a historically volatile month for markets and this year is no different, with investors currently climbing multiple walls of worries," Rod von Lipsey, managing director at UBS Private Wealth Management said.