Stock markets rallied to record highs at the opening bell in New York on Monday, after drug makers Pfizer and BioNTech announced that their Covid-19 vaccine is more than 90 percent effective.

The Dow Jones Industrial Average opened up 1,600 points, or 5.6 percent, hitting an all-time high before retreating slightly. The broader S&P 500 also hit a record high, jumping 3.7 percent. The tech-heavy Nasdaq Composite grew 1.3 percent.

The 90 percent effective rate announced by Pfizer and BioNTech was better than the stock market was expecting. According to Dr. Anthony Fauci, the director of the National Institute of Allergy and Infectious Diseases, a vaccine that is 50 percent to 60 percent effective would be acceptable.

Pfizer said it plans to seek emergency use authorization from the US Food and Drug Administration soon after volunteers have been monitored for two months following their second dose of the vaccine. 

Pfizer CEO Albert Bourla said the company expects to have 1.3 billion doses of the vaccine available globally next year, on top of 50 million doses this year. Two separate production lines, one in the United States and one in Europe, will make the vaccine.

Pfizer’s stock soared by more than 14 percent at the opening bell.

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