Shares on Wall Street rose at the close of trading on Tuesday, and the Dow Jones Industrial Average broke the 30,000-point level for the first time.
American stocks were supported in light of hopes of recovery of the economy, due to the promising results of Corona vaccines, and the start of procedures for the transfer of power to the US President-elect Joe Biden.
The gains included all the eleven major sectors of the Standard & Poor’s 500 Index, as stocks sensitive to the economy, such as financial companies, materials and energy, rose, while the industrial sector hit a record high.
Sentiment was boosted this week by Biden’s determination to nominate former Federal Reserve Chair Janet Yellen for the position of Treasury Secretary, which may focus on efforts to address widening economic inequalities.
“The uncertainty on the election front has subsided a bit, the market is looking very welcoming to Yellen’s news, and today looks like one of those days when everything is going up,” said Ross Mayfield, an investment strategy analyst at Bird.
He added, “If there is a lesson learned from 2020, it is that stock markets have a tremendous capacity to overcome bad news whenever the sun appears on the horizon.”
Based on unofficial data, the Dow rose 454.57 points, equivalent to 1.54%, to 30,045.84 points, and Standard & Poor’s advanced 57.82 points, or 1.62%, to record 3,635.41 points, and the Nasdaq Composite Index rose 156.15 points, or 1.31%, to 12036.79 points.
US consumer confidence fell more than expected in November amid a widespread spike in Covid-19 infections and the reimposition of restrictions on business activities, which renewed expectations for a sharp economic slowdown in the fourth quarter of the year.
Results of the Conference Board survey Tuesday come on the heels of reports this month showing the smallest gains in employment and retail sales growth in October since a recovery from the pandemic’s recession began in May. The number of new applications for unemployment benefit increased in mid-November.
The economy is losing momentum as more than $ 3 trillion in government stimulus lapses. The money helped millions of unemployed Americans meet their daily expenses and made it easier for companies not to lay off workers, leading to record economic growth in the third quarter.
The consumer confidence index fell to 96.1 this month from 101.4 in October. Economists polled by Reuters had expected the index to decline to 98 in November. The index was at 132.6 in February.
The status quo index, based on consumer assessments of corporate and labor market conditions, declined to 105.9 from 106.2 in October. The expectations index, which measures consumers’ outlook on income, business and the labor market in the short term, fell to 89.5 from 98.2.
“As 2021 approaches, consumers do not expect a stronger economy or labor market … and the return of Covid-19 infections to the rise is spreading more uncertainty and fueling concerns about the outlook,” said Lynn Franco, director of economic indicators at the Conference Board.