US STOCKS-S&P 500 futures surge on recovery, vaccine hopes

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* Novavax jumps, to test vaccine candidate on humans
* Beaten down travel-related stocks surge
* Futures up: Dow 1.92%, S&P 1.74%, Nasdaq 1.58%

(Adds details; updates prices)
By Medha Singh and Uday Sampath Kumar
May 26 (Reuters) - U.S. stock futures surged on Tuesday as
business restarts and optimism about a potential coronavirus
vaccine helped investors returning from a long weekend to
overlook Sino-U.S. tensions.
U.S. biotech group Novavax Inc NVAX.O jumped 21% in
premarket trading as it joined the race to test coronavirus
vaccine candidates on humans and enrolled its first
participants. Merck & Co Inc MRK.N advanced 3.2% as it announced plans
to develop two separate vaccines. Wall Street's main indexes have risen sharply from March
lows, gaining 3% last week, on hopes of an eventual coronavirus
antidote and easing of virus-related curbs.
"The markets are focusing more on healthcare related news
getting better and the possibility for a vaccine by the end of
the year and the potential for increased economic activity as
more and mores states reopen," said Art Hogan, chief market
strategist at National Securities in New York.
California can now reopen in-store retail businesses and
places of worship following shutdowns in one of the most
restrictive coronavirus containment rules in the United States.
Spain urged foreign holidaymakers to return from July and
Britain was looking to reopen thousands of High Street shops and
shopping centers next month. The beaten down travel-related stocks soared with United
Airlines Holdings Inc UAL.O , online travel agency Expedia
Group Inc EXPE.O , hotel operator Marriott International Inc
MAR.O rose between 5.1% and 7%.
Cruise companies Royal Caribbean Corp RCL.N , Norwegian
Cruise Line Holdings NCLH.N and Carnival Corp CCL.N rose
about 8%.
At 7:36 a.m. ET, S&P 500 e-minis EScv1 were up 1.74% to
3,004 points. The futures contract broke through 2,988.38, a
200-day simple moving average, suggesting a strong day ahead for
U.S. stocks.
Dow e-minis 1YMcv1 were up 469 points, or 1.92%. and
Nasdaq 100 e-minis NQcv1 were up 148.25 points, or 1.58%.
Later in the day, the Conference Board's data is expected to
show consumer confidence index edged up slightly after hitting a
six-year low in April.

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