The Dow Jones Industry Average first crossed the 30,000 mark when financial markets around the world clashed with hopes of a coronavirus vaccination and a smooth transition to Joe Biden’s presidency.
The Wall Street market is a milestone as investors, with rapid medical advances, end the Covid epidemic sooner with fear, paving the way for a rapid economic recovery next year as business moves closer to normal and tough government restrictions.
The meeting will also take place after the U.S. General Services Directorate (GSA) has declared Bident the apparent winner of the U.S. election, clearing the way for a formal transition from the Donald Trump administration, ending weeks of uncertainty and delay.
Nevertheless, Trump quickly asked for credit for the meeting. “It’s a sacred number, 30,000. No one thought they’d ever see it,” he said at an extremely short press conference. “This is the 48th time we have broken records under the Trump administration.”
He then congratulated his administration and “most importantly: the people of our country”.
Despite coronavirus infections soaring worldwide, the Dow garnered more than 450 points – about 1.5% – on Tuesday, closing above 30,000 for the first time.
Other major stock markets have also appreciated. It jumped in recent weeks after major pharmaceutical companies reported promising developments as a result of Covid vaccination trials, with FTSE 100 gaining about 1.6%, up 100 points, and closing Day 6432.
The leading index of UK corporate stocks marked the best week of April earlier this month, after Pfizer / BioNTech said the Covid vaccine was 90% effective in protecting people from the spread of the virus in global trials.
The UK blue-chip index is more than 1,000 points behind the beginning of the year, reflecting the extent of the Covid recession in the UK. In contrast, U.S. stock markets were boosted by significant gains for U.S. technology companies that benefited from the transition to online work and shopping during the pandemic.
Vaccine updates from Oxford University and AstraZeneca further broadened the demonstration this week amid hopes for a rapid economic recovery next year. However, the market value of the UK’s largest pharmaceutical company has fallen more than £ 4bn since Monday’s announcement after reporting lower efficiencies than other major vaccine manufacturers.
European markets also extended Tuesday’s rally, with French CAC 40 and German DAX up more than 1.2% on Tuesday. Oil prices have soared amid speculation that a rapid economic recovery could boost global energy demand, with U.S. oil prices hitting $ 45 a barrel for the first time since March.
Russ Mold, head of investment at Manchester-based stockbroker AJ Bell, said: “Oil is behaving like an economic bell and the commodity has come under tears over the past month, rising in value by more than 20% as markets start to grow. optimistic amid news about the positive vaccine about economic activity. “
The gains come when investors speculate that protracted political uncertainty over U.S. election results will gradually end after the GSA has launched a formal transfer of power to allow Biden to take over the presidency in January.
It is in stark contrast to Trump’s claim that a Biden victory would cause a stock market crash. Hoping for a smooth change of power, the Covid vaccination program, and a rapid economic recovery, the S&P 500 benchmark has been at its best since November.
Analysts say there is growing hope that the next administration will be able to cope with the Covid-19 epidemic, stimulate economic recovery and adopt a new stimulus package to relaunch growth in the world’s largest economy. Investors are also pleased that Janet Yellen, former head of the U.S. Federal Reserve, is lining up to be the next U.S. Secretary of the Treasury.
Joshua Mahony, chief market analyst at financial trading firm IG, said: “With economic data improving, a vaccination on the road, and another stimulus led by Biden on the horizon, there are plenty of reasons to be optimistic months in advance. “