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Optimism ruled the day on Wall Street Monday as investors took comfort in President Trump's decision to extend stay-at-home guidelines through April in order to curtail the spread of the coronavirus in the U.S.
Percentage gains for the Dow, S&P 500 and Nasdaq were each more than 3 percent.
Ross Gerber is CEO and President of Gerber Kawasaki
SOUNDBITE (ENGLISH) ROSS GERBER, CEO/PRESIDENT, GERBER KAWASAKI, SAYING:
"So we know that social distancing and quarantines work, so by being disciplined this month, I think we can get beyond this. So the market is happy with this, with Trump doing what is necessary to get beyond this and to open up the economy for real eventually soon."
Drug stocks were in rally mode… on promising development related to the fight against coronavirus.
Abbot Labs jumped more than 6 percent after it won U.S. approval for a coronavirus test that can deliver results within minutes. The company plans to start distributing the test this week.
Johnson and Johnson rallied 8 percent. It worked out a deal with the U.S. to spend $1 billion on facilities that will produce more than 1 billion doses of a vaccine it is testing.
Regeneron and its partner Sanofi expanded a clinical trial of a possible treatment to patients outside of the U.S. Regeneron gained 5 percent.
Cruise stocks, however, were left out of Monday's broad stock market rally. Carnival Cruise Lines extended a suspension on all voyages on four separate cruise lines until May. Rival Royal Caribbean announced a similar move last week. Shares of Carnival slumped more than 11 percent.
Oil prices were also slammed. U.S. crude touched below $20 a barrel for the first time in 18 years. Saudi Arabia and Russia are showing no signs of backing off a feud that threatens to flood the market with cheap oil. A phone call between President Trump and Russia's Putin, where they agreed to set up a meeting between their top energy officials, failed to stop the slump.