- The Dow Jones index has pushed passed 30,000 points for the first time in history, amid burgeoning hopes for a swift U.S. economic recovery
- The key index was approaching the milestone valuation back in January, before the COVID-19 pandemic triggered a global economic downturn
- When promising vaccine trials hit the news earlier this month, the Dow Jones began to rapidly approach its pre-pandemic levels
- Then news broke on Tuesday that the Trump administration would begin co-operating with president-elect Joe Biden’s incoming team
- As the protracted election outcome has been delaying further U.S. economic stimulus, news of the co-operation caused the Dow to surge 500 points and break through the landmark figure
- Despite the positive market reaction, new daily cases of COVID-19 in the U.S. remain above 170,000, and a number of states remain in various levels of lockdown
The Dow Jones index has pushed passed 30,000 points for the first time in history, amid burgeoning hopes for a swift U.S. economic recovery.
The key index, which measures 30 of the U.S.’s largest companies across a range of sectors, was first approaching the milestone valuation back in January, before the COVID-19 pandemic triggered a global economic downturn.
Since then, the index has been staging an aggressive recovery, despite COVID-19 cases across the U.S. continuing to rise. When promising vaccine trials hit the news earlier this month, the Dow Jones began to rapidly approach its pre-pandemic levels and the elusive 30,000-point milestone.
Then, early on Tuesday, president-elect Joe Biden received notice from the White House that the Trump administration would co-operate with the handover process. While Trump continues to concede the election, the president took to twitter to outline his decision to co-operate with the incoming administration.
…fight, and I believe we will prevail! Nevertheless, in the best interest of our Country, I am recommending that Emily and her team do what needs to be done with regard to initial protocols, and have told my team to do the same.
— Donald J. Trump (@realDonaldTrump) November 23, 2020
Following the news, the Dow staged a 500-point surge and broke through the landmark valuation.
The U.S. Federal Government’s upcoming financial stimulus has been stymied for months, while the election and its protracted result was being handled.
With news that the Trump administration is now co-operating with Biden’s team, fears of a delayed stimulus bill have begun to fade, leading to Tuesday’s rapid rally.
All that said, new daily cases of COVID-19 in the U.S. remain above 170,000, and a number of states remain in various levels of lockdown, suggesting the economic impact of the pandemic is far from over. Nevertheless, with a vaccine on the horizon and the presidential scuffle somewhat quelled, Wall Street appears optimistic about the coming months.