Wall St. soars to new high as Dow crests 30,000 on vaccine progress, Biden transition

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Wall St. soars to new high as Dow crests 30,000 on vaccine progress, Biden transition

On Tuesday, a slew of US stocks had witnessed a robust rally with benchmark S&P 500 leading the tallies of gains as trade-sensitive Dow Jones Industrial Average had surpassed a psychological resistance level of 30,000 points for the first time in history, while investors appeared to be looking beyond the pandemic-led holocaust over anticipation of a cracking economic rebound next year.

In point of fact, Tuesday’s Wall St. had largely played down fiscal risks stemmed off the rapidly rising pandemic cases, in part due to a swathe of pandemic vaccine progresses with Pfizer, Moderna and AstraZeneca being the frontrunner in global vaccine development, while a formal clearance for the US President-elect Joe Biden’s takeover of Oval Office had downsized investors’ concerns.

Apart from that, pharmaceutical giant AstraZeneca was quoted saying earlier in the day that its pandemic vaccine could potentially reach more than 90 per cent efficacy, stoking hopes in the emerging market economies, a majority of which might not be able to fulfil the highly expensive logistics requirements of Pfizer and Moderna vaccines.

Wall St. soars as Dow scales quickest 10,000 points

In actuality, there had been a number of major developments on Tuesday including a nod from the incumbent US President Donald Trump to accept the November 3 US Presidential election result, while vaccine hopes had fuelled up the rallies of economically sensitive stocks likes of energy, materials and financials and the industrials’ stock index had spiked to a record high.

Citing statistics, as all three key indices of Wall St. had spiked to a new closing high on Tuesday, Dow surged 1.54 per cent to breach 30,000 points for the first time in history and S&P 500 snowballed 1.62 per cent to clock a new closing high of 3,635.41, while Nasdaq rose 1.31 per cent to wrap up the day at 12,036.79.

Meanwhile, addressing to investors’ optimism over a smooth transition of power in the Capitol Hill, an investment strategy analyst at Baird, Ross Mayfield said on the day’s Wall St. closing bell, “A little bit of decreasing uncertainty on the election front, the market seems pretty favorable on the Yellen announcement, it just seems like one of those good days where all things are moving a little higher.

If 2020 has shown us anything it is that stock markets have a tremendous ability to look past bad news if there is sun on the horizon”.