By Medha Singh
(Reuters) – U.S. stock index futures rose nearly 1% on Monday as bets of an economic recovery, aided by hopes of an effective COVID-19 vaccine, helped investors shrug off worries over new restrictions to combat surging infections across the United States.
Michigan and Washington state on Sunday became the latest to impose new limitations on gatherings as total U.S. infections crossed the 11 million mark, just over a week after hitting 10 million.
The S&P 500 <.SPX> and the small-cap Russell 2000 <.RUT> ended Friday at record closing highs, as upbeat early data from a vaccine trial by Pfizer Inc <PFE.N> and BioNTech SE <22UAy.F> sparked a rotation into value stocks.
The tech-heavy Nasdaq <.IXIC> finished the week slightly lower.
Big U.S. banks gained about 1% each in premarket trading, building on sharp gains last week, while industrial behemoths Boeing Co <BA.N> and Honeywell International Inc <HON.N> gained about 1.7% each.
Better-than-expected factory output data from China also bolstered optimism about a rebound from a coronavirus-induced slump, pushing global stocks closer to record highs on Monday.
At 6:14 a.m. ET, Dow e-minis <1YMcv1> were up 286 points, or 0.97%, S&P 500 e-minis <EScv1> were up 30.75 points, or 0.86%, and Nasdaq 100 e-minis <NQcv1> were up 67.75 points, or 0.57%.
Among other stocks, Simon Property Group Inc <SPG.N> rose 4.4% after the biggest U.S. mall operator cut its purchase price for an 80% stake of rival Taubman Centers Inc <TCO.N>, as the virus outbreak upends the retail industry sector.
Johnson & Johnson <JNJ.N> gained 1.6% after launching a new large-scale study to test a two-dose regimen of its experimental COVID-19 vaccine.
(Reporting by Medha Singh in Bengaluru; Editing by Shounak Dasgupta)
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