'Wow! Dow' Surpasses 30,000 for the First Time Ever... Global Stock Markets Rally Together

Biden Administration Transition and Yellen Treasury Nomination Expectations
Risk Assets Rise Amid Liquidity Market...Safe-Haven Assets Weaken

On the 24th (local time), trader Peter Tuchman, known as the "Face of Wall Street," wore a commemorative hat celebrating the Dow Jones Industrial Average surpassing 30,000 points for the first time in front of the New York Stock Exchange. On the same day, both the Dow and the S&P 500 indices simultaneously hit record highs.
[Image source=Reuters News Agency]

[Asia Economy New York=Correspondent Baek Jong-min] Global stock markets cheered the development of a COVID-19 vaccine and the resolution of political uncertainties in the United States. On the New York Stock Exchange, the Dow Jones Industrial Average surpassed the 30,000 mark for the first time in history, while European and Asian markets also rose simultaneously.

On the 24th (local time), the Dow Jones closed at 30,046.24, up 454.97 points (1.54%) in New York. The Dow set a new record by rising 10,000 points in just 3 years and 10 months since surpassing 20,000 in January 2017. Considering it took 18 years to rise from 10,000 to 20,000, the pace of increase has accelerated significantly. The S&P 500 rose 1.62% to 3,635.4, and the Nasdaq also increased 1.31% to 12,036.79.

CNBC explained that the strong U.S. stock market, including the rise in the Dow, was fueled by expectations following the official start of the transition process for President-elect Joe Biden and the news of former Federal Reserve Chair Janet Yellen’s nomination as Treasury Secretary. The New York Times (NYT) noted that with the Biden administration taking shape, the Dow and S&P 500 have entered new territory.

European markets, which closed earlier than New York, also experienced a positive trend. The UK’s FTSE 100 index rose 1.6%, while Germany’s DAX 30 and France’s CAC 40 indices closed up 1.3% and 1.2%, respectively. The pan-European Euro Stoxx 50 index also increased by 1.3%.

The rise in U.S. and European markets influenced Asian markets on the 25th (Korean time). Japan’s Nikkei 225 index was up 1.98% (518.78 points) at 26,684.37 as of 10:26 a.m., while the KOSPI continued its upward trend for the sixth consecutive trading day, reaching a new all-time high thanks to net buying by individuals and foreigners. The KOSPI opened at 2,637.34, up 0.75% (19.58 points), and climbed to as high as 2,642.26 during the session.

The positive market sentiment also lifted oil prices. On the New York Mercantile Exchange (NYMEX), West Texas Intermediate (WTI) crude oil for January delivery surged 4.3% ($1.85) to close at $44.91 per barrel.

On the other hand, the safe-haven asset gold declined. December delivery gold fell 1.8% ($33.20) to close at $1,804.60 per ounce. The 10-year U.S. Treasury bond prices also dropped.