Nov 27, 2020
Tuesday, November 24th, marked a couple of very important events for the US and, quite frankly, the world at large.
After a debacle that seemed never to end, Donald Trump has finally given the green light for president-elect Joe Biden to officially transition into the White House. This came as a result of the General Services Administration (GSA) formally declaring Joe Biden as the winner of the US 2020 Elections.
That, coupled with the announcements of promising results from vaccine developers Moderna, Pfizer, and Astra Zeneca, kicked off a rally that propelled Wall Street’s leading indices to record highs these past couple of weeks. Similarly, reports hinting that Joe Biden intends to nominate Federal Reserve Chair – Janet Yellen as Treasury Secretary further bolstered the sentiment this week. Yellen’s aggressive approach to economic recovery seemingly yielded good news for the markets.
The blue-chip Dow rallied by over 450 points on Tuesday, surpassing the 30,000 milestone shortly after beginning Tuesday’s trading session. Soaring past its previous all-time high of 20,000 that it witnessed a while back, Dow finally has a breakthrough that’s been 125 years in the making.
120 years of price history on one chart.
Dow 30,000. pic.twitter.com/nHqOiIwNIG
— TradingView (@tradingview) November 24, 2020
Trump took to the floor and congratulated his administration and the American citizens.
“That’s a sacred number, 30,000. Nobody thought they’d ever see it”
He was quick to add that victory under his belt, claiming that it’s the 48th record broken under the Trump administration. His daughter Ivanka also immediately heralded the news congratulating America on its success.
Dow Jones Industrial Average hits 30,000 for the first time ever!
Congratulations America! 🇺🇸 pic.twitter.com/pQFRdxaIHL
— Ivanka Trump (@IvankaTrump) November 24, 2020
The Dow Jones Industrial Average rose 454.97 points, or 1.54%, to 30,046.24, the S&P 500 gained 57.82 points, or 1.62%, to 3,635.41, and the Nasdaq Composite added 156.15 points, or 1.31%, to 12,036.79.
Brent crude oil was up 4% on Tuesday – trading at almost $48 a barrel. Boeing gained 3.29% after getting draft approvals for its new 737 MAX jets. Enthusiasm spread across the world by Wednesday, with stocks in Asia gaining 0.45%. In Japan, the Nikkei rose 1.7% to a new 29-year high.
Elsewhere in the world, the FTSE 100 in London has not witnessed the same recovery that the US did. However, hopes of a Brexit deal by the end of the year, combined with the vaccine spree, have pushed the index to make up 15.2% this month alone.
“Uncertainties about next year are being cleared out of the way, and the vast liquidity put is still positive even if this all looks like it’s a little exuberant.”
Neil Wilson, chief markets analyst at Markets.com
By Thursday, the market appeared to be pivoting back to near-term pandemic realities and lack of fiscal stimulus.
The Dow Jones Industrial Average fell 197.14 points, or 0.66%, to 29,849.1, the S&P 500 lost 12.24 points, or 0.34%, to 3,623.17 and the Nasdaq Composite added 29.74 points, or 0.25%, to 12,067.06.
However, a Thanksgiving gift of the trading week ending on a positive note has fuelled optimism.
Perhaps, some analysts are right when they say that 2020 has shown us that the stock markets are very capable of ignoring bad news so long as the sun is on the horizon.