The Dow Jones Industrial Average traded above 30,000 points for the first time on Tuesday as investors were encouraged by the latest progress on developing coronavirus vaccines and news that the transition of power in the US 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 rose more than 400 points, or 1.4 per cent, to trade just over 30,000 at midday Tuesday. The S&P 500 index rose 1.3 per cent.
Stocks are opening broadly higher on Wall Street on Tuesday, as traders were encouraged by news that the transition of power in the US to President-elect Joe Biden will finally begin. (Image: AP)
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.
Traders are favouring stocks that stand to gain the most from a gradual reopening of the economy, such as banks and industrial companies. Overseas markets also rose. Treasury yields and oil prices were headed higher.
European markets were broadly higher, and Asian markets closed mixed.