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Dow Jones hits 30,000 for the first time in history

The Dow Jones Industrial Average traded over 30,000 points for the first time on Tuesday. Investors were encouraged by the latest developments in the development of the coronavirus vaccine and the news that the transition of US power to President Elect Joe Biden is finally underway.


What you need to know

  • The Dow Jones Industrial Average traded over 30,000 points for the first time on Tuesday
  • Investors were encouraged by the latest advances in the COVID-19 vaccine, the move to Biden, and the choice of Janet Yellen as Treasury Secretary, as reported by Biden.
  • Overseas market also rises
  • The latest vaccine development has also eased protracted concerns about the rise in viral cases in the United States.

Traders were also encouraged by the news that Biden chose Janet Yellen, the widely respected former Federal Reserve Chairman, as Treasury Secretary. The Dow rose more than 400 points (1.4%) at noon on Tuesday, trading at just over 30,000. The S & P 500 Index, which has a much greater impact on 401 (k) accounts than the Dow, rose 1.3%.

This benefit extends the month-long market recovery, driven by growing optimism that the development of coronavirus vaccines and treatments will loosen the shackles of the pandemic economy. They also show that during the worst of the early pandemics, the Dow soared from a low of just under 18,600 on March 23.

The Dow rose 440 points (1.5%) to 30,032 at 11:38 EST. Boeing, which brings heavy weight to the Dow, rose 3.8%. The technology-intensive Nasdaq Composite index rose 1%.

Traders favor stocks, such as banks and industrial companies, that are in a position to maximize profits from the gradual resumption of the economy. Overseas markets have also risen. Treasury yields and oil prices were on the rise.

On Monday, Federal Secretary of State confirmed that Biden was the clear winner of this month’s presidential election. This will allow President-elect Donald Trump to coordinate with federal agencies on plans to take over on January 20, despite continued efforts to overturn the election.

The statement that Biden chose Yellen as Treasury Secretary also boosted investor confidence. Widely admired in the financial world, Yellen was the first woman to lead the sector as far back as Alexander Hamilton in 1789, playing a vital role in helping to formulate policy during dangerous times. ..

This month’s stock price rose and the S & P 500 rose more than 10% as investors’ expectations that the development of coronavirus vaccines and treatments would help pave the way for next year’s economic recovery increased.

The latest vaccine development has also eased protracted concerns about the rise in viral cases not only in the United States but also in Asia and elsewhere in the world, as well as new government regulations on companies aimed at limiting their spread.

On Monday, pharmaceutical company AstraZeneca reported surprisingly good results from ongoing vaccine research. The potential vaccine being developed at Oxford University is said to be up to 90% effective. Unlike rival candidates, AstraZeneca does not need to be stored at extremely low temperatures, making it easy to distribute.

Last week, both Pfizer and Modana reported findings showing that their vaccine was nearly 95% effective. And over the weekend, Regeneron Pharmaceuticals received US government approval for emergency use of COVID-19 treatment. The drug, which Mr. Trump received when he became ill last month, is intended to prevent hospitalization and exacerbation of the disease in patients with mild to moderate symptoms.

Treasury yields have risen as investors have become more optimistic about the outlook for economic growth. Benchmark 10-year Treasury yields rose from 0.84% ​​at the end of Monday to 0.88%.

Trading on Wall Street is expected to be light this week, ahead of Thursday’s Thanksgiving holiday when the US stock market closes. They will resume on Friday for a half-day session.

The European market has risen sharply and the Asian market has closed in different ways.

The Associated Press contributed to this report.

Dow Jones hits 30,000 for the first time in history

Source link Dow Jones hits 30,000 for the first time in history

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