Dow Jones Index Surpasses 30,000 for the First Time... Impact of Government Transition Start and Yellen's Treasury Nomination (Update)

Safe-haven assets gold and government bonds are weak

[Image source=Reuters Yonhap News]

[Asia Economy New York=Correspondent Baek Jong-min] The Dow Jones Industrial Average in the U.S. New York stock market broke through the 30,000 mark intraday for the first time ever on the 24th (local time).

The official start of the transition process for President-elect Joe Biden and the news of former Federal Reserve (Fed) Chair Janet Yellen's nomination as Treasury Secretary are said to have cheered investors in the U.S. stock market despite the COVID-19 situation.

On that day, the Dow index succeeded in breaking through 30,000 at 11:27 a.m. After attempting to break the 30,000 mark early in the session and briefly hesitating, it surpassed 30,000 and even surged to 30,036 points.

As of 11:48 a.m., the Dow index was at 30,017, up 1.44 points from the previous day. Besides the Dow, the S&P 500 and Nasdaq also showed gains in the 1% range.

CNBC reported that the stock market rise was attributed to the news of former Fed Chair Janet Yellen's nomination as Treasury Secretary and President Donald Trump's directive to cooperate with President-elect Joe Biden on the transition, which resolved uncertainties surrounding the transfer of power.

With investments flowing into risk assets, safe-haven assets such as gold and U.S. Treasury bonds weakened. International gold prices fell 1.9% to trade at $1,801.10, and the 10-year U.S. Treasury yield rose by 0.26 percentage points to 0.885%. An increase in bond yields means a decline in bond prices.