Dow Jones Industrial Average Hits 30000 for the First Time
Index climbs to milestone amid vaccine progress, signs that U.S. election uncertainty is ebbing
The Dow Jones Industrial Average jumped past 30000 for the first time Tuesday, the latest milestone in a postelection rally turbocharged by promising results from three potential coronavirus vaccines.
The index of blue-chip companies gained more than 440 points in recent trading, or 1.5%, to push it to 30040. Earlier in the day, the Dow went above 30100, its highest intraday level in history.
The rise beyond 30000 underscores this year’s remarkable journey for the Dow industrials. The blue-chip index flirted with 30000 in February, then dropped below 19000 in March as the coronavirus pandemic spread. The index has since soared, thanks, in part, to an improving economic landscape and low-interest rates that have boosted the appeal of riskier assets.
President Trump, who often tweets about the rallying stock market, called the 30000 milestone a “sacred number” in a short press conference.
Tuesday’s leg up came after Mr. Trump said his aides would cooperate with President-elect Joe Biden’s transition to the White House, easing investors’ concerns about a drawn-out period of uncertainty.
Investors are cheering signs that a protracted fight over control of the White House is potentially drawing to a close, reducing political risks over the winter months. The General Services Administration chief said Monday that her agency would provide Mr. Biden federal resources meant to assist in a smooth transfer of power. Mr. Trump also said he has instructed aides to help with the transition.
“This is very positive: it means that we finally might get an orderly transition process,” said Luc Filip, head of private banking investments at SYZ Private Banking. “That would relieve some of the uncertainties that have been weighing on the market over the past two to three weeks.”
The S&P 500 rose 1.7%, pointing to a second day of gains, while the Nasdaq Composite rose 1.3%.