GLOBAL MARKETS-S&P and Dow advance, Treasury yields soar on potential vaccine

* Pfizer says COVID-19 vaccine is 90% effective
* Crude, U.S. Treasury yields jump, gold slides
* Biden win boosts trade-sensitive currencies
* Graphic: 2020 asset performance http://tmsnrt.rs/2yaDPgn
* Graphic: World FX rates in 2020 http://tmsnrt.rs/2egbfVh

(Updates to market close)
By Stephen Culp
NEW YORK, Nov 9 (Reuters) - The S&P 500 and the blue-chip
Dow indices followed world equity indexes higher and U.S.
Treasury yields surged on Monday, as progress in the development
of a coronavirus vaccine sparked a surge of optimism that the
global economy will stage a solid recovery as life returns to
normal,
A pivot away from tech and into value stocks pushed the
bellwether S&P and Dow sharply higher, but they ended the
session shy of record highs. Crude oil prices, meanwhile, had
their best day in more than five months, jumping more than 8%.
Weakness in shares that benefited from pandemic-related
restrictions, the so-called "stay-at-home" stocks, pulled the
tech-heavy Nasdaq into the red.
Pfizer Inc PFE.N said its COVID-19 vaccine, developed with
German partner BioNTech SE BNTX.O , was more than 90% effective
in preventing infection, marking the first successful results
from a large-scale clinical trial. "This is the closest we've been to the hopes that people
have had since March that things will get back to the way they
were," said Paul Nolte, portfolio manager at Kingsview Asset
Management in Chicago. "You can throw all the stimulus at it you
want but if people are afraid to go out to a movie theater or
get on a plane it might not go anyway."
World stock markets got an early boost as global leaders
welcomed the U.S. election results, congratulating
President-elect Joe Biden even as incumbent Donald Trump refused
to concede, vowing to challenge the result. "You could call it an election relief rally," Nolte added.
"Now we can move on to something else."
The CBOE Market Volatility index .VIX , a barometer of
investor anxiety, hit its lowest closing level since late
August.
The Dow Jones Industrial Average .DJI rose 834.57 points,
or 2.95%, to 29,157.97, the S&P 500 .SPX gained 41.06 points,
or 1.17%, to 3,550.5 and the Nasdaq Composite .IXIC dropped
181.45 points, or 1.53%, to 11,713.78.
Pfizer's announcement gave a jolt to European shares,
sending them to an eight-month high, building on expectations of
more stable trade policies in the wake of Biden's victory.
The pan-European STOXX 600 index .STOXX rose 3.98% and
MSCI's gauge of stocks across the globe .MIWD00000PUS gained
1.30%.
Emerging market stocks rose 1.36%. MSCI's broadest index of
Asia-Pacific shares outside Japan .MIAPJ0000PUS closed 0.92%
higher, while Japan's Nikkei .N225 %.
The vaccine news sent long-dated U.S. Treasury yields
sky-rocketing in their biggest one-day jump since March. The
yield curve, an indication of risk appetite, hit its steepest
level since March. Benchmark 10-year notes US10YT=RR last fell 33/32 in price
to yield 0.9321%, from 0.82% late on Friday.
The 30-year bond US30YT=RR last fell 90/32 in price to
yield 1.7223%, from 1.598% late on Friday.
Oil prices surged, posting their biggest daily percentage
gain in more than five months as the vaccine news and an OPEC
output deal fueled optimism over rebounding demand. U.S. crude CLcv1 rose 8.48% to settle at $40.29 per barrel
and Brent LCOcv1 settled at $42.40, up 7.48% on the day.
The prospect of a Biden presidency buoyed trade-related
currencies on expectations of a thawing of the tariff war as the
dollar index rose from a 10-week low. The dollar index .DXY rose 0.68%, with the euro EUR=
down 0.49% to $1.1814.
The Japanese yen weakened 1.93% versus the greenback to
105.39 per dollar, while Sterling GBP= was last trading at
$1.3161, up 0.04% on the day.
Gold prices slumped as investors pivoted away from the
safe-haven metal in favor of riskier assets. Spot gold XAU= dropped 4.3% to $1,867.41 an ounce.