Shares of retailers and other consumer companies rose as promising vaccine data spurred demand for the shares hardest hit by the fallout of the pandemic.
Shares of airlines and cruise-lines surged on hopes that the vaccine from Moderna would revive consumer interest in tourism.
Many major states, including Texas and California have eased restrictions recently, and investors are betting that these efforts will pay off economically, without sparking a major second wave of infections.
The National Association of Homebuilders on Monday said its housing market index increased to 37 this month, from 30 in April, as builders grew slightly more confident about their prospects given the reopening efforts.
Real-estate brokerage firm Re/Max's National Housing Report said home sales dropped an average of 20.2% from a year earlier.
Chain store J.C. Penney plans to permanently close more than 240 department stores, or nearly 30% of its locations, as part of its chapter 11 bankruptcy reorganization.
Retail stocks are rallying despite a historically punishing spring, according to one brokerage.
"Retail sales were expected to be bad, but they were even worse than expected," said analysts at brokerage Nomura Securities, in a note to clients, referring to the April sales tally.
"That said, retail stocks are up and continue to outperform off the bottom, as the market is more focused on the shape of the potential recovery in May and June."
Shares of retail-property developer Hammerson rallied after reports that investment firm Lighthouse Capital had taken a 9.13% stake in the company.
The investment firm behind Peet's Coffee, Pret A Manger and Panera Bread is pushing ahead with an initial public offering of its coffee business, aiming to raise up to $2.2 billion, The Wall Street Journal reported.
Write to Rob Curran at rob.curran@dowjones.com
