The Dow Jones Industrial Average reached a record high Tuesday in a move so powerful that it caused President Trump to make an appearance.
The Dow surpassed 30,000 in early trading, reflecting several points of optimism:
The COVID-19 vaccine progress, which bolsters hope for an economic recovery.
The continued rise in U.S. home prices.
Progress toward a transition to President-elect Joe Biden.
Biden’s appointment of former Federal Reserve Chair Janet Yellen as treasury secretary.
The index had reached 30,116.51 by noon.
Meanwhile, the S&P 500 climbed 1.5% by midday, putting it on pace for a record closing high, and the Nasdaq Composite advanced 1%. The small-cap Russell 2000 also hit an all-time high. And crude oil reached more than $43 a barrel, its highest price since March.
President Trump, speaking at the White House, called the level a “sacred number.” Trump, who allowed only three minutes’ notice for the media, did not mention the election.
“I just want to congratulate everybody. The stock market Dow Jones Industrial Average just hit 30,000, which is the highest in history,” the president said, concluding his thoughts with further congratulations to the American people and to his administration.
These new, round numbers such as 30,000 aren’t viewed as a big deal for most investors. They do, however, help drive optimism.
With challenges to the global economy such as the ongoing pandemic and its associated issues with vaccine distribution, there is no guarantee of continued rapid growth. But the rally from historic lows in March has been a welcome relief to those in the market.
Since the Dow reached its previous milestone of 29,000 in January, Apple has been the largest contributor to the rally, adding more than twice that of any other component over the past 10 months.