Dow closes above 30,000 for 1st time on Biden transition, vaccine developments
NEW YORK, NY -- The Dow Jones Industrial Average traded and closed above 30,000 points for the first time Tuesday as investors were encouraged by the latest progress on developing coronavirus vaccines and news that the transition of power in the U.S. to President-elect Joe Biden will finally begin.
Traders were also encouraged by news that Biden had selected Janet Yellen, a widely respected former Federal Reserve chair, as treasury secretary.
The Dow finished the day up nearly 455 points, or 1.5%. The blue chip index hit a new all-time high in the process. The S&P 500 closed 1.6% higher and the Nasdaq ended 1.3% higher on Tuesday, and they too are not far from all-time highs.
The gains extend a monthlong market rally driven by growing optimism that development of coronavirus vaccines and treatments will loosen the pandemic’s stranglehold on the economy. They also mark a rapid climb for the Dow from its March 23 low of just under 18,600 during the worst of its early pandemic nosedive.
“We are one step closer to moving past the election uncertainty,” said Lindsey Bell, chief investment strategist at Ally Invest. “People are still optimistic about what 2021 has to bring, from an economic perspective and an earnings perspective.”
