U.S. stocks were all fired up at its most recent trading session, amid high hopes on U.S President-Elect, Joe Biden’s smooth transition to power and its top pick for the post of U.S treasury, Janet Yellen, saw investors buying at record levels, leading the Dow 30 to reach its all-time high.
- A significant number of gains were seen in the Basic Materials, Oil & Gas, and Financial sectors.
- At the close of trading at the New York Stock Exchange, the Dow Jones Industrial Average surged by 1.55% to hit a new all-time high, while the S&P 500 index gained 1.63%, and the NASDAQ Composite index added 1.32%.
- The best performers of the session on the Dow Jones Industrial Average were Chevron Corp, which rose 4.92% or 4.48 points to trade at 95.51 at the close.
- Meanwhile, JPMorgan Chase & Co (NYSE: JPM) added 4.28% or 5.05 points to end at 122.92 and American Express Company was up 3.88% or 4.51 points to 120.60 in late trade.
What they are saying
Stephen Innes, Chief Global Market Strategist at Axi, in a note to Nairametrics, hinted at key fundamentals presently pushing U.S stocks to record high:
“The Dow Jones index hit a symbolic milestone overnight, breaking through the 30,000 level. Market sentiment remains underpinned by the trio of successful vaccine trials announced in recent weeks, as well as, by the U.S. President’s decision after the close on Tuesday to co-operate with a transition of power to President-elect Joe Biden.
“Thanks to the multiple vaccines in the pipeline. ‘Joy to the World’ is ringing in earlier than expected as global investors are elated by the vaccine news.”
What this means
Janet L. Yellen, a highly respected Economist, has been tipped to become the first female Treasury Secretary. This has apparently excited investors based on her impeccable records leading the U.S Federal Reserve, some years ago.
Stock traders are simultaneously reveling in the drop in political existential risk premium now knowing the finishing touches on the U.S. election process will not devolve in mobocracy, as the U.S. General Services Administration acknowledged that Joe Biden can start his formal transition to the White House.