The Dow Jones Industrial Average surged above 30,000 points for the first time, and the S&P also hit a record on optimism for a coronavirus vaccine and gains in US housing prices.
The market was also boosted by President-elect Joe Biden's announcement that former Federal Reserve Chairman Janet Yellen, 74, would be nominated for Treasury Secretary, according to Fox News. Yellen's appointment is viewed by many as a stabilizing force at a time of economic fragility amid the coronavirus pandemic. If this were confirmed, Yellen, who was chairman of the Federal Reserve from 2014 to 2018, would be the first woman to hold the position. Yellen is also expected to be confirmed with little drama, given positive reviews by progressive Democrats like Elizabeth Warren and Republicans, including former members of President Trump's cabinet.
“She has a great experience, she has great judgment. I think she would make an excellent chairman of the Federal Reserve, ”said Massachusetts Senator Elizabeth Warren in 2013 when Yellen was considered for the Fed chairmanship.
Trump's former director of the National Economic Council, Gary Cohn, also praised Yellen on Twitter on Tuesday.
Janet Yellen is an excellent choice for Treasury Secretary. Having had the opportunity to work with then Chair Yellen, she will no doubt be the steadfast hand we need to foster an economy that works for everyone, especially in these troubled times. Congratulations.
– Gary Cohn (@Gary_D_Cohn) November 23, 2020
The Dow Jones industrial average rose 454 points, or 1.54%, while the S&P 500 and Nasdaq Composite rose 1.62% and 1.31% on the news of Yellen's nomination and the first coronavirus vaccinations before the end of the year could be carried out.
The news sent stocks up in a variety of areas, including pharmaceuticals, after AstraZeneca announced positive news regarding its coronavirus vaccine. According to Fox, oil giants Exxon Mobil Corp. and ConocoPhillips Their stocks rose when crude oil hit $ 44.91 a barrel, its highest price since March. Despite warnings from federal and state health authorities, cruise lines and airlines also saw their inventories rise, a good indicator of vacation travel.
President Trump even praised Tuesday's gains in a one-minute press conference that confused White House reporters.
Overheard in the conference room, "Well that was weird as shit." pic.twitter.com/T2iAKwhWU2
– Charlie Spiering (@charliespiering) November 24, 2020
The spike didn't last, however, as CNBC saw the market drop more than 200 points early Wednesday.