The Dow Jones Industrial Average hit a record high of 30,000 a year on Tuesday, a symbolically significant benchmark in a year that has been ejected from the economic consequences of the coronovirus epidemic and a inflammatory, controversial electoral cycle.
The Dow rose just over 400 points on Tuesday morning, crossing an intraday high. Both the S&P 500 and the Nasdaq Composite climbed just under 1 percent.
The Wall Street rally came after the Trump administration agreed to begin the transition process for President-elect Joe Biden, giving him millions of dollars access to federal money and other resources to begin his transition to power. .
President Donald Trump’s team waged a legal legal battle across the country to fight the results, leaving Kovid-19 on the vaccine and other key issues out of the loop.
The market hit record highs earlier this month after Modern and Pfizer announced both promising vaccine candidates in the fight against Kovid-19.
Wall Street was also optimistic after former Federal Reserve chairman Janet Yellen was elected president, the prospect of Joe Biden for Treasury Secretary.
While Yellen faces a major challenge to get the country out of the epidemic amid millions of jobs and record debt levels, markets have grown under her tenure at the Fed and she has decades of macroeconomic experience. During his four-year tenure at the Fed, Yellen supported economic reform and low interest rates through economic monetary policy.
In July, Yellen urged lawmakers to renew the emergency benefits created in the early days of the coronavirus virus, prompting House members to choose a subcommittee on the coronavirus virus, saying it would not extend $ 600 in additional weekly unemployment insurance There will be “catastrophe” for. For millions of American work.
The added benefit is a lifeline for those who are out of work, Yellen said, noting that on the broad spectrum, “we need the expenses that unemployed workers can afford.”
It has been a long time since this market benchmark has arrived. The Dow came within a few percentage points to hit 30,000 back in January, a window of opportunity when the Kovid-19 pandemic seemed to close to widespread shutdowns, job losses and loss of GDP. But aggressive rates of optimism from the Federal Reserve and tech sector led to a surge in stocks and with the intervention of the central bank accelerated the valuation of large tech companies, which increasingly dominated benchmark indices, many of which had sudden gains . And dramatic changes in consumer behavior resulting from the epidemic.
“Whenever you have a favorable Fed, a low interest rate, a favorable environment, prospects for stocks are good,” said David Frisk, president of Fris Financial Group.
Global market strategist, Senior Sameer Sameer said, “Being a transporter since March, a lot of us have been working from home, we are doing things really well. Wells Fargo Investment Institute. Especially From, Apple, Microsoft and Salesforce have helped make the Dow high.
There is also an emotional dynamic that falls in the markets near the symbolic benchmark. BMO Wealth Management’s chief investment strategist, Yung-Yu Ma, said, “There is a market sentiment associated with psychology and those few big levels.”
Analysts say investors should be wary of overcrowding, noting that it may still be months before a vaccine is readily available to most Americans.
“Even with the promise of an effective Kovid-19 vaccine, we will now have to take a cautious view of the damage caused by this virus,” said James MacDonald, CEO of Hercules Investments, “to return to normalcy”. ‘Not yet arrived.
“Overnight recovery is impossible, let alone prevent overnight growth that exceeds pre-Kovid-19 levels,” he said.