Daily Management Review

Dow Jones hits 30,000 points for the first time in its history


According to analysts, November could be the best month for the Dow Jones Industrial Average stock index since 1987. The index is rising on investor optimism about vaccines, economic growth and the change of presidential power in the USA.

The Dow Jones Industrial Average Index has exceeded 30,000 points for the first time in the history of the stock market. Experts attribute this growth to the success of three COVID-19 vaccines and the beginning of the transition period between the administrations of Presidents Donald Trump and Joseph Biden. Trump called the 30,000 mark a "sacred number".

As noted by Bloomberg, at the last trading session, Dow Jones added 450 points, or 1.5%, rising to 30040.  Earlier on Tuesday the index rose above 30100, the highest intraday value in the history of the stock market. Bloomberg estimates that the Dow Jones rose by 13% in November, making the last month the best month for the index since 1987.

"The growth of the world's best-known stock index reflects a profound market reshaping in November, when growing optimism about a resumption of economic growth pushed industries such as energy and banking, which were hit by restrictions," the agency explains the success of the index. 

Earlier this year the index was approaching 30,000 points in February and then fell below 19,000 in March when the novel coronavirus pandemic was declared. The index rose by 62% from its March low and by 5.3% - over the year, The Wall Street Journal writes. The S&P 500 Index also set a new record. The index added 57.82 points, or 1.6%, to 3635.41 points. The Nasdaq Composite Index rose 156.15 points, or 1.3%, to 1,2036.79 points, the second highest closing in history, WSJ said.

U.S. officials, Reuters recalls, said on Tuesday that they plan to release 6.4 million doses of COVID-19 vaccine nationwide for initial distribution after the first one is approved by regulators for emergency use. 

Biden's nomination of former Federal Reserve Chairman Janet Yellen as Finance Minister was another factor in the growth of stock markets, the agency said.  President Donald Trump, who often writes on Twitter about stock market growth, called the intraday DJ level of 30,000 a "sacred number".

source: wsj.com, reuters.com