The Dow Jones industrial average showed the fastest jump by 10,000 points and reached the 30,000 mark for the first time in history on Tuesday, November 24. The following day, the rally continues and the Dow Jones stock index rose 1.54% to 30,046.24.
Such a strong rally, which appeared suddenly after the March lows, can amaze even experienced traders. The stock market has gained significant psychological momentum amid the raging pandemic.
This rise was largely influenced by the news that the administration of the still-current US President Donald Trump finally agreed to begin transferring power to Joe Biden. It is recognized that few expected such a turn of events from a diehard Republican.
And yet, the Dow Jones index was not so long ago approaching the mark of 30,000 points, and this was also during the Trump presidency. On February 7, 2020, the industrial index futures reached 29,102 points. However, soon the country was covered by a wave of coronavirus, in which the authorities were forced to introduce restrictive measures on the territory of their country. The pandemic and subsequent economic slowdown brought the Dow Jones index down to 18,500 points at the end of March. Whatever it was, this is the 48th time that the record of this industrial index was broken at a time when the country was ruled by the Trump administration. In this regard, Trump congratulated the Americans and his administration staff, and later left the room in silence, avoiding reporters.
Meanwhile, Joe Biden continues to shape his team. A significant factor for the rise of the Dow Jones was also reports that Biden eyes former Fed chair, Janet Yellen, the appointment of the new head of the country's Department of the Treasury. The post of head of the CIA is claimed by Avril Haines, who, if appointed, will become the first woman to lead American intelligence. Biden is nominating Anthony Blinken for the post of Secretary of State, and Jake Sullivan for the post of National Security Advisor. John Kerry plans to take the post of the president's special envoy for climate change. Alejandro Mallorcas will become the newly appointed Minister of Internal Security.
At the same time, US officials announced that they are going to provide 6.4 million doses of the coronavirus vaccine in the future.
As you can see, there is optimism on all sides. It is quite possible that the current industrial indicator will attract small investors who intend to take advantage of the market growth at the moment. Although experienced market players were initially impressed by the 30,000-point indicator, it was not particularly significant in general. The 20,000-point figure reached in January 2017 likely meant much more to investors than just a big headline.
