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 US to President-elect Joe Biden will finally begin. Traders were also encouraged to see that Biden had selected Janet Yellen, a widely respected former Federal Reserve chair, as treasury secretary, the AP reports. The Dow rose 454 points, or 1.5%, to close at 30,046. The S&P 500 index rose 1.6%. Treasury yields also rose as investors became more optimistic about the economy.
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," says Lindsey Bell, chief investment strategist at Ally Invest. The AP lists other times the Dow has crossed milestones, including 1,000 points on Nov. 14, 1972; 5,000 points on Nov. 21, 1995; 10,000 points on March 29, 1999; and 20,000 points on Jan. 25, 2017.
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