Here's what happened to the stock market on Tuesday

People walk by the New York Stock Exchange (NYSE) on May 18, 2020 in New York City.
Spencer Platt | Getty Images

Dow Jones Industrial Average rises 529 points

The Dow surged 529.95 points, or 2.17%, to close at 24,995.11. The S&P 500 gained 1.23% to end the day at 2,991.77. The Nasdaq Composite advanced 0.17% to 9,340.22 . Stocks rallied to levels not seen since March as investors cheered the reopening of the economy and mounted bets on a potential coronavirus vaccine.

Reopening, vaccine hopes spark massive rally

Novavax said Monday it started the first human study of its experimental coronavirus vaccine. The company said it expects initial results on safety and immune responses in July. Meanwhile, economic activity continued to pick up as states begin opening up their economies. New Jersey Gov. Phil Murphy said professional sports teams in the state can resume training and competition, with their leagues' approval.

'Reopening' trade leads market higher

Shares of companies that benefit from the economy reopening led the broader market higher. Carnival shares gained 12.59% while MGM Resorts advanced 11.01%. United Airlines and Southwest rose 16.26% and 12.64%, respectively. Bank stocks such as JPMorgan Chase and Citigroup rose more than 7% each while Wells Fargo advanced 8.65%.

What happens next?

Weekly mortgage applications data, along with the Federal Reserve's Beige Book, are set for release Wednesday.

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