Dow Closes Above Historic Value of 30,000

The Dow closed above 30,000 for the first time ever Tuesday as stocks continued their rally on the combination of Biden’s smooth transition to office and positive COVID-19 vaccine news.

Prior, the markets have been swamped with concern that current president Donald Trump would continue his legal battles for the presidential spot. Luckily, the General Services Administration informed Joe Biden that federal resources will be made available for his transition into the Oval Office, giving investors a much-needed breather on the front. News that former Federal Reserve Chair - Janet Yellen is Biden's Treasury Secretary nominee have additionally given the markets a boost.

«Yellen is seen as a very credible choice for the position overall and specifically, well equipped to drive the recovery from the destruction caused by the pandemic as she helped navigate the country in the aftermath of the Great Recession», Stifel commented.

Value stocks, in turn, continued their rally amid positive vaccine news. Financials, industrials, and energy paved the way for the broader market rally, with the latter closing up more than 5% on rising oil prices, which had jumped 4% to their highest level since the pandemic start, as optimism over the demand outlook for 2021 loomed. Industrials, meanwhile, were pushed higher by an ongoing rally in the air-sector, with American Airlines Group and United Airlines seen up more than 9%, and Boeing - 5%. Tech stocks have also bounced back from their previous-day weakness.

Mixed economic data and a consumer confidence index fall did not manage to influence the market rally. The Dow rose 1.54%, and is now up more than 60% since its March lows. S&P 500 gained 1.62%, while Nasdaq added 1.31%.

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