U.S. equity markets soared Monday after drugmaker Moderna announced progress toward a COVID-19 vaccine and as lockdowns continued to ease nationwide.

The Dow Jones Industrial Average gained as many as 1,023 points before paring its advance in the final hour of trading.

The S&P 500 registered its best day since early April, rising 3.15 percent, while the Nasdaq Composite climbed 2.44 percent.

Investors also reacted favorably to Federal Reserve Chairman Jerome Powell, who said the central bank will continue to support the U.S. economy for as long as necessary.

Powell also warned that while the U.S. economy will return to growth in 2020, it may not reach pre-crisis levels until late next year and that a full recovery may hinge on the discovery of a COVID-19 vaccine.

"For the economy to fully recover, people will have to be fully confident. And that may have to await the arrival of a vaccine,” Powell said on CBS’ “60 Minutes.”

He added the central bank is “not out of ammunition by a long shot” and that “there’s a lot more” that can be done to support the economy.

At least 14 U.S. states eased lockdown restrictions on Monday, including Florida, which allowed gyms and fitness centers to reopen at 50 percent capacity and restaurants and retailers to increase their volume to 50 percent. Massachusetts will begin opening businesses with a phased plan on May 18.

Looking at stocks, drugmaker Moderna received positive results from a Phase 1 clinical trial for its experimental COVID-19 vaccine. Read more at FOX Business