Dow Tops 30,000 for the First Time; S&P 500 Also Hits a Record Close
A historic milestone in the market this Tuesday: for the first time, the Dow Jones Industrial Average traded above 30,000.
The index closed the day 1.5% up, at 30,046.24 points. Intraday, it reached 30,116.51 points.
Year-to-date, the Dow has risen 5.28%.
The S&P 500 also hit a record this Tuesday, climbing 1.6% to 3,635.41.
The Nasdaq Composite rose 1.3% to 12,036.79.
According to CNBC, “Tuesday’s gains put the Dow up more than 13% for the month, which would be its biggest monthly gain since 1987. The S&P 500 and Nasdaq are up 11.2% and 10.3%, respectively, in November. It would be the Nasdaq’s and S&P 500′s best monthly performances since April.
CNN noticed that “the blue-chip index took just over 120 years to crack the 20,000 mark for the first time in early 2017, just after President Donald Trump took office. It needed just less than a year after that to reach the 25,000 mark on January 4, 2018.”
Investors reacted with optimism to the news that the White House’s formal transition finally started and anticipated an economic recovery for the next year, considering the recent good news in the Covid vaccine front.
On Monday night, via Twitter, President Donald Trump said he is not conceding to Joe Biden and would keep fighting, but he authorized for the formal transfer of power to begin.
Wall Street also liked the news that circulated Monday that Biden would nominate former Federal Reserve Chair Janet Yellen as Treasury secretary. If confirmed, she would be the first woman in this role. She was also the first woman to serve as Fed chair, nominated in 2014 by President Barack Obama.
The market believes that with Yellen as Treasury secretary, a second stimulus bill is more likely to be approved.
Also boosting the positive outlook is the news suggesting that a COVID-19 vaccine would start to be available in the U.S. in mid-December.
Some in the market, though, suggest investors be cautious. Coronavirus cases and deaths are still rising, and more restrictive measures are being adopted by governments around the country and abroad. This scenario can still trigger a crash in the market from its record levels.