U.S. Stocks Rally After Worst Week in Almost Two Months

U.S. stocks rallied Monday on hopeful news around a potential coronavirus vaccine, recovering ground following their biggest weekly percentage drop in nearly two months.

The Dow Jones Industrial Average jumped 732 points, or 3.1%, to 24419, the S&P 500 rose 2.7% and the Nasdaq Composite added 2%.

The gains wiped out last week’s losses. The S&P 500 shed 2.3% last week after a range of data highlighted the sharp contraction in economic activity across the nation.

European indexes also climbed, with the pan-continental Stoxx Europe 600 gauge rising 3.1%. Most...