US STOCKS- S&P 500, Nasdaq start December at peak on vaccine optimism

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* Pfizer-BioNTech seek EU emergency approval for COVID-19
vaccine
* China's Nov. factory activity growth hits decade high
* Zoom falls after warning of gross margin pressure
* Indexes: Dow and S&P rise 1.4%, Nasdaq up 1.1%

(Updates to market open)
By Shriya Ramakrishnan and Medha Singh
Dec 1 (Reuters) - The S&P 500 and the Nasdaq hit record
highs on Tuesday as hopes that a COVID-19 vaccine will be
available soon and better-than-expected factory data from China
bolstered bets of a speedy economic recovery.
Investors are closely following updates on a handful of
leading vaccine candidates as well as the start of global
shipments as drugmakers submit paperwork for regulatory
approvals.
Pfizer Inc PFE.N gained about 5% as the drugmaker and
Germany's BioNTech SE BNTX.O sought emergency approval of
their vaccine candidate from the European regulator.
The partners are now neck-and-neck with rival Moderna
MRNA.O , which jumped 11% after announcing it would ask the
regulator to recommend conditional approval for its shot.
"The optimism continues to build for a vaccine to come out
and be very successful... There is this expectation that you're
going to see a global synchronized recovery next year," said
Larry Adam, chief investment officer at Raymond James.
Investors overlooked data showing U.S. manufacturing
activity slowed in November amid a rise in COVID-19 infections
that has prompted state-wise restrictions, with California
considering new "stay-at-home" orders. All major S&P sectors rose with economically-sensitive
energy .SPNY and financials .SPNY leading gains.
The Dow .DJI wrapped up its best month in more than three
decades on Monday as breakthroughs in vaccine spurred a shift
toward sectors hardest-hit by virus induced shutdowns.
At 10:08 a.m. ET, the Dow Jones Industrial Average .DJI
rose 409.86 points or 1.38% to 30,048.50, the S&P 500 .SPX
gained 49.33 points, or 1.36% to 3,670.96 and the Nasdaq
Composite .IXIC gained 136.25 points or 1.12% to 12,334.61.
Earlier in the day, China's better-than-expected factory
data lifted global equities. Several other countries also
reported sharp upticks in factory activity. Investors will focus on remarks from Treasury Secretary
Steven Mnuchin and Federal Reserve Chair Jerome Powell at a
congressional hearing, which is likely to highlight divisions
over what more should be done in response to the pandemic.
Among other stocks, Zoom Video Communications Inc ZM.O
tumbled 12% after the company warned its gross margins would
remain under pressure going into 2021. Tesla Inc TSLA.O rose about 3% after S&P Dow Jones Indices
said it would add one of Wall Street's most valuable companies
to the S&P 500 index all at once on Dec. 21. Micron Technology MU.O advanced 5% as the chipmaker
increased its revenue, gross margin and earnings per share
guidance for the first quarter of 2021. Advancing issues outnumbered decliners by a 5-to-1 ratio on
the NYSE and by a 2.3-to-1 ratio on the Nasdaq.
The S&P 500 posted 31 new 52-week highs and no new low,
while the Nasdaq recorded 212 new highs and seven new lows.