Stocks rose this month as investors grew more hopeful that developing coronavirus vaccines would help the economy recover.
The Dow Jones Industrial Average broke 30,000 points Tuesday as investors encouraged the recent progress in developing coronavirus vaccines and news that the transfer of power in the United States to President-elect Joe Biden will finally begin.
Traders were also encouraged to see that Biden had chosen Janet Yellen, the widely respected former Federal Reserve chairperson, as Treasury secretary.
The Dow Jones rose 454 points, or 1.5%, to close at 30.046. The S&P 500, which had a much greater impact on the 401 (k) accounts than the Dow, rose 1.6%. Treasury yields rose as investors became more optimistic about the economy.
The gains extend to a month-long market rally driven by growing optimism that developing vaccines and treatments for the coronavirus will ease the pandemic’s hold on the economy. It also represents a rapid rise in the Dow Jones from its March 23 low of just below 18,600 during the worst-case of an early epidemic crash.
Traders preferred stocks that would benefit the most from the gradual re-opening of the economy, such as banks and industrial companies. Foreign markets also rose. Treasury yields and oil prices were trending upward.
In an announced and brief appearance in the White House briefing room, President Donald Trump touted the stock market record.
Trump said, “I’m happy with what happened on the vaccines front. That was absolutely unbelievable.” “This is a secret number 30,000. Nobody thought they’d ever see that.”
On Monday, the head of the Federal Public Services Administration conceded that Biden was the clear winner in this month’s presidential election. This allows the new president to coordinate with federal agencies on plans to take office on January 20, despite President Donald Trump’s ongoing efforts to cancel the election.
The word that Biden had chosen Yellen as Treasury secretary also added to investor confidence. Yellen is highly admired in the financial world, and would be the first woman to lead the oath in a line that stretches to Alexander Hamilton in 1789, taking a pivotal role to help shape politics at a precarious time.
Stocks rose this month, pushing the S&P 500 up more than 10%, as investors raised hope that developing vaccines and treatments for the Coronavirus will help pave the way for the economy to recover next year.
And recent developments in the vaccine alleviate persistent concerns High incidence of the virus In the United States, as well as in Asia and other parts of the world, new government restrictions on companies aimed at curbing the spread.
On Monday, drug company AstraZeneca reported surprisingly good results from its ongoing vaccine studies. She said her potential vaccine, which is being developed with the University of Oxford, is up to 90% effective. Unlike competing candidates, AstraZeneca does not have to be stored in extremely cold temperatures, which facilitates distribution.
Last week, Pfizer and Moderna reported results of a study showing their vaccines were nearly 95% effective. Over the weekend, Regeneron Pharmaceuticals received US government approval for the emergency use of its COVID-19 treatment. The drug, which Trump received when he fell ill last month, is aimed at trying to prevent hospitalization and disease worsening in patients with mild to moderate symptoms.
Treasury yields rose as investors became more optimistic about economic growth prospects. The yield on the benchmark 10-year Treasury note rose to 0.88% from 0.84% late Monday.
Trading is expected to be light on Wall Street this week ahead of the Thanksgiving holiday on Thursday, when US stock markets are closed. They will reopen on Friday for half a day.
European markets were broadly higher, and Asian markets closed mixed.