On Tuesday, the New York Stock Exchange rose sharply, with the Dow Jones index coming to a new high, crossing the symbolic mark of 30,000 points for the first time in its history. Investors look forward to 2021, when, thanks to vaccination, they hope to be able to turn the page on the coronavirus. They welcomed the political changes in the United States and almost three weeks after the election that brought victory to Democrat Joe Biden, Donald Trump eventually gave the green light to the transition process. Markets have also received enthusiastic news that Janet Yellen, the former chair of the Fed, will be appointed by Joe Biden as Treasury Secretary.
At the close, the Dow Jones rose 1.54% to 30,046 points (after a high of 30,116 points in the session), while the large S&P 500 index climbed 1.62% to 3,635 points, setting a new record as well. The Nasdaq Composite, which is rich in technical and biotech inventories, also increased by 1.36% to 12,036 points, touching just 0.17% of its last peak of 12,056 points on 2 September.
WTI’s contracts have increased by 4.3% to nearly $45, the highest since the beginning of March, and have risen by more than 25% since the beginning of November in the expectation of a revival in demand in 2021, thanks to the Covid-19 vaccine.
On the political side in the U.S. on Tuesday, at a press conference, Joe Biden said that America was “back, ready to lead the world,” and presented the names of officials selected to lead its future government in diplomacy and defense. Among them are a number of senior figures who worked under Barack Obama, such as Antony Blinken, the future Secretary of State (head of diplomacy), and John Kerry, Barack Obama’s former Secretary of State, who has become the special environment envoy of the President-elect.
Linda Thomas-Greenfield, appointed US ambassador to the UN said that “multilateralism is back, diplomacy is back”, in contrast to the Trump era, where only bilateral relations, often conflicting, had prevailed.
The appointment of Janet Yellen as Treasury Secretary is hailed by the markets in anticipation of stronger strategy for the recovery of U.S. economy amid second wave of coronavirus.