AP

Dow crests 30,000 points on vaccine hopes, Biden transition

Nov 24, 2020, 2:33 PM

The sign is displayed at the New York Stock Exchange in New York, Monday, Nov. 23, 2020.  Stocks ar...

The sign is displayed at the New York Stock Exchange in New York, Monday, Nov. 23, 2020. Stocks are opening broadly higher on Wall Street on Tuesday, as traders were encouraged by news that the transition of power in the U.S. to President-elect Joe Biden will finally begin, and that Biden had selected Janet Yellen, a widely respected former Federal Reserve chair, as treasury secretary. (AP Photo/Seth Wenig)

(AP Photo/Seth Wenig)

The Dow Jones Industrial Average broke through 30,000 points Tuesday as investors were encouraged by the latest progress on developing coronavirus vaccines and news that the transition of power in the U.S. to President-elect Joe Biden will finally begin.

Traders were also encouraged to see that Mr. Biden had selected Janet Yellen, a widely respected former Federal Reserve chair, as treasury secretary. The Dow rose 454 points, or 1.5%, to close at 30,046. The S&P 500 index, which has a far greater impact on 401(k) accounts than the Dow does, rose 1.6%. Treasury yields rose as investors became more optimistic about the economy.

The gains extend a month-long market rally driven by growing optimism that the 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.

RELATED:  Downtown Salt Lake City stores hope shoppers come back for Christmas

“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 Dow was up 444 points to 30,037 as of 3:03 p.m. Eastern time. Boeing, which brings a heavy weight to the Dow, rose 3%. The technology-heavy Nasdaq composite was up 1.2%.

Traders are favoring 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.

“There’s some relief that Mr. 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.

On Monday, the head of the federal General Services Administration acknowledged that Mr. Biden is the apparent winner of this month’s presidential election. That allows the incoming president to coordinate with federal agencies on plans for taking over on Jan. 20, despite ongoing efforts by President Donald Trump to overturn the election.

Word that President-elect 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 10%, as investors have grown more hopeful that the development of coronavirus vaccines and treatments will help pave the way for the economy recover next year.

The latest vaccine developments are also tempering lingering concerns over rising virus cases in the U.S., as well as in Asia and other parts of the world, and new government restrictions on businesses aimed at limiting the spread.

On Monday, drugmaker AstraZeneca reported surprisingly good results from ongoing vaccine studies. It said its potential vaccine, which is being developed with Oxford University, was up to 90% effective. Unlike rival candidates, AstraZeneca’s doesn’t have to be stored at ultra-cold temperatures, making it easier to distribute.

Last week, Pfizer and Moderna both reported study results showing their vaccines were almost 95% effective. And, over the weekend, Regeneron Pharmaceuticals received U.S. government approval for emergency use of its COVID-19 treatment. The drug, which Trump received when he was sickened last month, is meant to try to prevent hospitalization and worsening disease from developing in patients with mild-to-moderate symptoms.

Treasury yields rose as investors became more optimistic about the prospects for economic growth. The yield on the benchmark 10-year Treasury note rose to 0.88% from 0.84% late Monday.

Trading is expected to be light on Wall Street this week ahead of the Thanksgiving holiday on Thursday, when U.S. stock markets will be closed. They will reopen on Friday for a half-day trading session.

European markets were broadly higher, and Asian markets closed mixed.

We want to hear from you.

Have a story idea or tip? Send it to the KSL NewsRadio team here.

AP

Two horses on the loose bolt through the streets of London near Aldwych, on Wednesday April 24, 202...

Pan Pylas, Associated Press

Rush hour chaos in London as 5 military horses run amok after getting spooked during exercise

LONDON (AP) — Five military horses spooked by noise from a building site bolted during routine exercises on Wednesday near Buckingham Palace, threw off four riders and caused chaos as they galloped loose through central London streets and collided with vehicles during the busy morning rush hour. The commotion erupted when the horses from the […]

31 minutes ago

A TikTok content creator, sits outside the U.S. Capitol, Tuesday, April 23, 2024....

HALELUYA HADERO AP Business Writer

Senate passes bill forcing TikTok parent company to sell or face ban, sends to Biden for signature

The Senate passed legislation that would force the parent company of TikTok to sell the social media platform under the threat of a ban.

1 day ago

A wood sign with the Google Cloud logo on a sunny day. A person rides their bike behind it....

Associated Press

Google has fired more workers who protested its deal with Israel

An activist group says Google fired at more workers following protests of technology the company is supplying the Israeli government amid the Gaza war.

2 days ago

The Chicago Bears logo is pictured on a flag prior to an NFL football game...

Associated Press

Chicago Bears schedule a Wednesday announcement on new stadium near lakefront

The team said last month it was prepared to provide more than $2 billion in funding toward a publicly owned stadium in the city.

2 days ago

An assortment of vegan, organic, locally sourced, and wild caught food products all using plastic p...

Associated Press

How one grocery shopper takes steps to avoid ‘pointless plastic’

Nature wraps bananas and oranges in peels. But in some modern supermarkets, they're bagged or wrapped in plastic too. For one shopper, it's too much.

2 days ago

us supreme court shown, court hearing case on ghost guns...

MARK SHERMAN, Associated Press

Supreme Court will take up the legal fight over ghost guns, firearms without serial numbers

The Supreme Court had previously intervened to keep regulation for gun ghosts in effect during a legal fight over the rules.

3 days ago

Sponsored Articles

a doctor putting her hand on the chest of her patient...

Intermountain Health

Intermountain nurse-midwives launch new gynecology access clinic

An access clinic launched by Intermountain nurse-midwives provides women with comprehensive gynecology care.

Young couple hugging while a realtor in a suit hands them keys in a new home...

Utah Association of Realtors

Buying a home this spring? Avoid these 5 costly pitfalls

By avoiding these pitfalls when buying a home this spring, you can ensure your investment will be long-lasting and secure.

a person dressed up as a nordic viking in a dragon boat resembling the bear lake monster...

Bear Lake Convention and Visitors Bureau

The Legend of the Bear Lake Monster

The Bear Lake monster has captivated people in the region for centuries, with tales that range from the believable to the bizarre.

...

Live Nation Concerts

All the artists coming to Utah First Credit Union Amphitheatre (formerly USANA Amp) this summer

Summer concerts are more than just entertainment; they’re a celebration of life, love, and connection.

Mother and cute toddler child in a little fancy wooden cottage, reading a book, drinking tea and en...

Visit Bear Lake

How to find the best winter lodging in Bear Lake, Utah

Winter lodging in Bear Lake can be more limited than in the summer, but with some careful planning you can easily book your next winter trip.

Happy family in winter clothing at the ski resort, winter time, watching at mountains in front of t...

Visit Bear Lake

Ski more for less: Affordable ski resorts near Bear Lake, Utah

Plan your perfect ski getaway in Bear Lake this winter, with pristine slopes, affordable tickets, and breathtaking scenery.

Dow crests 30,000 points on vaccine hopes, Biden transition