Yellen Treasury Pick Lifts stock exchanges; Dow Eyes 30,000


Investors are generally optimistic. After all, the stock market has been one of the most amazing elements of financial success for generations, with top companies finding new ways to overcome new barriers to growth.

It won’t make it any less scary to face the unknown. If the future is uncertain, it can be comforting to have a familiar face appear in a new role. It is reported that this will happen in the Treasury by 2021, and the decision eliminates the main source of anxiety about the direction the Biden government would take in terms of its economic policy.

Image source: Getty Images.

How the market stood on Monday

Monday’s somewhat turbulent session ended with significant gains. Market participants were able to draw on COVID-19 debates and a review of ongoing election results to monitor them in the long run. The Dow Jones industry average (DJINDICES: ^ DJI) climbed a short distance from the 30,000 mark, while the S&P 500 (SNPINDEX: ^ GSPC) and Nasdaq Composite (NASDAQINDEX: ^ IXIC) they enjoyed more modest self-profits.

Today’s stock market

Index

Percentage change

Point change

Dow

+ 1.12%

+328

S&P 500

+ 0.56%

+20

Nasdaq Composite

+ 0.22%

+26

Data source: Yahoo! Finance.

Yellen gets Biden’s nod

President-elect Joe Biden appoints former Fed President Janet Yellen to head the Treasury Department. Yellen will be the first woman to fill this post if the Senate confirms her nomination early next year.

Yellen has already made his views clear in his previous role in the Federal Reserve. Under the leadership of the Fed, Yellen took a more gradual approach to monetary policy than most of his predecessors and decided not to rush to cut interest rates, even as the U.S. economy accelerated in the mid-2010s. Fed policy has supported efforts to boost employment, a feeling echoed by Republicans in both progressive Democrats and industrialized nations hit hard by global competition. At confirmation hearings of the Fed becoming president, Yellen received bipartisan support.

Some progressors will be disappointed that Biden was not elected to Senate Elizabeth Warren (D-Mass.), Who was much more strongly critical of Wall Street and the wider business community. For investors, however, the news suggests a less confrontational approach to economic policy – this was what many had hoped for from a Biden administration.

Is the Dow 30,000 coming?

With today’s profit, the Dow was within 410 points when it first reached the 30,000 mark. The Dow’s November 12 final record was less than 50 points from the milestone, but the excitement of the initial coronavirus vaccine success wasn’t enough to get over it.

Less than two weeks later, the Dow went higher again. Several factors feed the move:

  1. A hard-hit aircraft giant Boeing (NYSE: BA) finally, it was given permission to take back 737 MAX aircraft into the air, and the end of the coronavirus crisis could put passengers on board those aircraft.
  2. Consumer stocks continue to perform well, even as new blocking regulations come into effect in the United States and around the world. Nike (NYSE: NKE) he recently increased his dividend, noting that he was able to stimulate business through his direct channel.
  3. Even in the still struggling energy industry Rafter (NYSE: CVX) jumped dramatically from its October low, soaring more than 35% in less than a month. The same was true of the big banks Goldman Sachs (NYSE: GS) and JPMorgan Chase (NYSE: JPM) it bounces back nicely.

A festive rally is certainly possible, especially when the Dow’s total demand is about 1.5% higher. If market participants continue to receive favorable news on the economic and political fronts, it could be the catalyst for the Dow to get above 30,000 – and the latest signal of a stock market that has denied all chances in 2020.