US STOCKS-S&P 500, Nasdaq end at record highs on vaccine optimism

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* Pfizer-BioNTech seek EU emergency approval for COVID-19
vaccine
* China's November factory activity growth hits decade high
* Bipartisan lawmakers propose $908 bln COVID relief bill

(Updates with market close)
By Noel Randewich
Dec 1 (Reuters) - The S&P 500 .SPX and Nasdaq Composite
.IXIC indexes closed at record highs on Tuesday, with
investors betting a COVID-19 vaccine will be available soon, and
more confident about a speedy economic recovery following upbeat
Chinese factory data.
Investors stayed focused on updates about a handful of
vaccine candidates and the start of global shipments as
drugmakers submit paperwork for regulatory approvals.
Pfizer Inc PFE.N jumped after the drugmaker and Germany's
BioNTech SE BNTX.O sought emergency approval of their vaccine
candidate from the European regulator. The partners are neck-and-neck with rival Moderna Inc
MRNA.O , which also applied for emergency approval from the
European regulator. Its stock tumbled from a record high the day
before. "There is this optimism about what it means as we see news
around vaccines emerge," said Bill Northey, senior investment
director at U.S. Bank Wealth Management in Minneapolis.
"As we look toward a health solution, we could be sitting on
a coiled spring of economic activity, but it could take a while
for it to be unleashed."
Earlier in the day, global equities got a boost from data
that showed China's factory activity in November increased at
its fastest pace in a decade. Several other countries also
reported sharp upticks in factory activity. U.S. data showed a recovery in manufacturing activity lost
momentum in November.
All 11 S&P 500 sector indexes rose, with communication
services .SPLRCL among the leading gainers.
Investors also focused on remarks by U.S. Treasury Secretary
Steve Mnuchin and Federal Reserve Chair Jerome Powell at the
Senate Banking Committee, where they agreed on the need for more
aid for small businesses. Meanwhile, a bipartisan group of U.S. lawmakers unveiled a
$908 billion COVID-19 relief bill aimed at breaking a
months-long deadlock between Democrats and Republicans over new
emergency assistance for small businesses, unemployed people,
airlines and other industries during the pandemic. Unofficially, the Dow Jones Industrial Average .DJI rose
188.5 points, or 0.64%, to 29,827.14, the S&P 500 .SPX gained
40.82 points, or 1.13%, to 3,662.45 and the Nasdaq Composite
.IXIC added 156.37 points, or 1.28%, to 12,355.11.
All three main stock indexes gained more than 10% in
November.
Zoom Video Communications Inc ZM.O slumped after warning
its gross margins would remain under pressure going into 2021.
Tesla Inc TSLA.O rose after S&P Dow Jones Indices said it
would add one of Wall Street's most valuable companies to the
S&P 500 index in one go on Dec. 21, rather than in two tranches.
Micron Technology Inc MU.O advanced as the chipmaker
increased its revenue, gross margin and earnings forecast for
the first quarter.