Richmond Times-Dispatch

Dowcloses above 30,000 for first time; investors hopeful about vaccine, Biden

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The Dow Jones Industrial Average closed above 30,000 points for the first time Tuesday as progress in the developmen­t of coronaviru­s vaccines and news that the transition of power in the U.S. to President-elect Joe Biden will finally begin kept investors in a buying mood.

Traders also were encouraged to see that Biden had selected Janet Yellen, a widely respected former Federal Reserve chair, as treasury secretary.

The Dow rose more than 450 points, or 1.5%, to cross the milestone. The S&P

500 index, which has a far greater impact on 401(k) accounts than the Dow, rose 1.6%, climbing to its own all-time high.

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.

“We are one step closer to moving past the election uncertaint­y,” said Lindsey Bell, chief investment strategist at Ally Invest. “People are still optimistic about what 2021 has to bring, from an economic perspectiv­e and an earnings perspectiv­e.”

The S&P 500 rose 57.82 points to 3,635.41. The

Dow gained 454.97 points to 30,046.24. Both indexes eclipsed record highs set early last week. The technology-heavy Nasdaq composite picked up 156.15 points, or 1.3%, to 12,036.79.

Traders continued to favor stocks that stand to gain the most from a gradual reopening of the economy, such as banks and industrial companies. Technology and communicat­ion stocks, which have been investor favorites through the pandemic, also helped lift the market.

In another signal that investors were feeling confident, the Russell 2000 index of smaller stocks outpaced the broader market, picking up 35.23 points, or 1.9%, to 1,853.53, also a record high.

James McDonald, chief executive of Hercules Investment­s, said investors should brace for more volatility despite the market’s historic surge Tuesday. He expects cities and states to initiate more restrictio­ns in the coming weeks in response to surging coronaviru­s cases, as well as congressio­nal tension over fiscal stimulus.

“While Dow 30,000 is a symbolic moment for the stock market, it is simply a continuati­on of the market’s euphoria after the preelectio­n sell-off,” McDonald said in a statement emailed to The Washington Post.

“There’s some relief that Biden is choosing moderates to fill out the cabinet,” said Barry Bannister, head of institutio­nal equity strategy at Stifel. Bannister also said the encouragin­g vaccine news continues to give hope that there is an end in sight to the pandemic.

Word that Biden has chosen Yellen as treasury secretary also added to investors’ confidence. Widely admired in the financial world, Yellen would be the first woman to lead the department in a line stretching back to Alexander Hamilton in 1789, taking on a pivotal role to help shape policies at a perilous time.

“She’s also pretty pro-fiscal stimulus and she’s able to effectivel­y work with people across the aisle,” Bell said. “She showed that in her time at the Fed.”

Stocks have been pushing higher this month, driving the S&P 500 up by more than 11%, as investors have grown more hopeful that the developmen­t of coronaviru­s vaccines and treatments will help pave the way for the economy to recover next year.

U.S. markets will be closed Thursday for the Thanksgivi­ng holiday. They will be open for half the day on Friday, closing at 1 p.m. Eastern.

 ?? NEWYORK STOCK EXCHANGE ?? A NewYork Stock Exchange traderwork­ed at his terminal on Tuesday. The DowJones Industrial Average traded above 30,000 points for the first time on encouragin­g progress on coronaviru­s vaccines and the transition of power in the U.S.
NEWYORK STOCK EXCHANGE A NewYork Stock Exchange traderwork­ed at his terminal on Tuesday. The DowJones Industrial Average traded above 30,000 points for the first time on encouragin­g progress on coronaviru­s vaccines and the transition of power in the U.S.

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