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(Bloomberg) — More positive news on a Covid-19 vaccine delivered a jolt to U.S. equity futures, sending stocks tied to an economic reopening higher, while erasing a rally in tech companies where investors had parked money during the lockdown. Treasuries slumped.

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S&P 500 contracts jumped alongside those on the Russell 2000 Index after Moderna Inc.’s vaccine was shown to be 94.5% effective in a preliminary analysis of a large late-stage clinical trial. The shares surged more than 10% in the pre-market. Stay-at-home favorites Peloton Interactive Inc. and Zoom Video Communications Inc. tumbled, while Delta Air Lines Inc. and Carnival Corp. gained more than 6%.

The vaccine news adds yet another driver to global stocks after optimism last week spurred a rotation into value and cyclical sectors, and out of more defensive industries. U.S. equity futures were up earlier after advisers to President-elect Joe Biden said they opposed a nationwide shutdown despite surging virus cases.

© Bloomberg U.S. investor sentiment gauge hits highest since early 2018

“We really do want to rotate into those cyclicals, those smaller caps, those higher-beta Covid plays,” Christopher Harvey, head of equity strategy at Wells Fargo Securities, told Bloomberg TV. “Those two catalysts — yield curve steepening and vaccines in the marketplace — these are really high Covid beta plays and we think now is the time to do it.”

Still, concerns about a sustainable economic recovery persist amid a flare-up in virus cases around the world. The pandemic continues to escalate in regions such as Europe and the U.S. American coronavirus cases have topped 11 million. Germany must live with “considerable restrictions” against the spread of Covid-19 for at least the next four to five months, its economy minister said.

Elsewhere, European equities rose, following Asian shares higher after a slew of countries on Sunday signed the world’s largest regional free-trade agreement, encompassing nearly a third of the globe’s population and gross domestic product. Australia’s stock exchange was hit by a software issue that forced it to close for most of Monday’s session. Oil pushed higher.

Here are some events to watch out for this week:

Brexit talks look set to continue as the U.K. and EU approach the latest deadline.Bloomberg New Economy Forum virtually convenes global leaders to discuss trade, growing political populism, climate change, and the pandemic. Former Federal Reserve Chair Janet Yellen and Indian Prime Minister Narendra Modi are among the many speakers. Through Nov. 19.OPEC+ Joint Ministerial Monitoring Committee meets Tuesday.U.S. retail sales due Tuesday.Bank Indonesia rate decision Thursday.

These are the main moves in markets:

Stocks

Futures on the S&P 500 Index climbed 1% as of 8:21 a.m. New York time.The Stoxx Europe 600 Index rose 1.5%.The MSCI Asia Pacific Index surged 1.4%.The MSCI Emerging Market Index rose 1.3%.

Currencies

The Bloomberg Dollar Spot Index decreased 0.1%.The euro dipped 0.1% to $1.1825.The British pound declined 0.1% to $1.3172.The onshore yuan strengthened 0.3% to 6.589 per dollar.The Japanese yen weakened 0.3% to 104.98 per dollar.

Bonds

The yield on 10-year Treasuries rose two basis points to 0.92%.The yield on two-year Treasuries climbed less than one basis point to 0.18%.Germany’s 10-year yield gained two basis points to -0.53%.Britain’s 10-year yield gained four basis points to 0.373%.Japan’s 10-year yield dipped less than one basis point to 0.021%.

Commodities

West Texas Intermediate crude rose 4% to $41.74 a barrel.Brent crude rose 3.5% to $44.27 a barrel.Gold weakened 0.8% to $1,873.53 an ounce.

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