The Dow Jones Industrial Average traded above 30,000 points for the first time 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 Biden had selected Janet Yellen, a widely respected former Federal Reserve chair, as treasury secretary.
The Dow rose more than 400 points, or 1.4%, to trade just over 30,000 Tuesday afternoon. The S&P 500 index, which has a far greater impact on 401(k) accounts than the Dow, rose 1.3%.
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.
The Dow jumped 480 points, or 1.6%, to 30,071 as of 12:30 p.m. Eastern time. Boeing, which brings a heavy weight to the Dow, rose 4.4%. The technology-heavy Nasdaq composite was up 1.1%.