NEW YORK: The Dow breached 30,000 points for the first time on Tuesday as investors bet on a swift economic recovery next year following progress on coronavirus vaccines and the formal go-ahead for President-elect Joe Biden's transition to the White House.
Economically-sensitive industrial stocks surged to a record high, while the financials and energy indexes jumped 3.3% and 4.8%, respectively. Electric-car maker Tesla Inc rose 4%, crossing $500 billion in market capitalization as investors lapped up its shares in the run-up to its addition to the S&P 500 index.
The S&P value index has gained about 15% so far in November compared with an 11% rise in the S&P 500. By contrast, the growth index, comprising the technology mega-caps that were seen as safe during the recession, is up less than 9%. Sentiment this week was also boosted by reports that Biden planned to nominate former Federal Reserve Chair Janet Yellen as Treasury Secretary, which could shift the focus heavily toward efforts to tackle growing economic inequality.
By 12:01 p.m. ET, the Dow Jones Industrial Average was up 1.69% at 30,092.53. The S&P 500 was up 1.57% and the Nasdaq Composite was up 0.99%. Boeing Co jumped 4.2% after European regulators gave draft approval to its 737 MAX jets, paving the way for a formal flight clearance in January.
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