US blue chip equities index, the Dow Jones, set a fresh all-time record, as it bounced over 440 points and hit 30,034 points.
Beating its previous record of 29,989 points booked at the end of 2019, the US index was buoyed by rallies posted by COVID-suffering equities in finance, commodities, air travel and film.
Chevron took the top spot, up 4.75%, followed closely by JP Morgan Chase and American Express up 3.74% and 3.69% apiece. Similarly, Boeing rose by 3.72%, while Disney boasted a 3.51% hike.
Unsurprisingly, tech stocks also contributed to the Dow Jones 1.5% jump. Intel rallied by 2.15%, Microsoft increased by 1.85%, and Apple enjoyed a 1.38% bounce. These big tech rises also contributed to healthy growth in the tech-laden Nasdaq, up 1.38% on Tuesday.
Speaking on US equities success and the knock-on effect on European stocks, Spreadex Financial Analyst, Connor Campbell, said on the day’s political developments: “It took the US open for the markets to really display their delight at the start of the formal transition process to the Joe Biden administration this Tuesday.”
“Relief that the Democrats can hopefully hit the ground running when it comes to tackling covid-19 in January, as well as the positive impact the pro-spending former Fed chair Janet Yellen is expected to make as Treasury Secretary, drove the Dow Jones to record highs.”
“With American investors driving stocks higher, the European markets didn’t want to be left out, doubling the gains seen earlier in the session.”
Still feeding off of vaccine update optimism, Western equities as a whole were boosted by the Dow Jones rally and the presidential transition news. Up by 1.55%, the FTSE hit 6,432, while the CAC and DAX both rallied by over 1.2% apiece.
Looking ahead, the outlook for the coming weeks looks bright, according to IG Chief Market Analyst, Chris Beauchamp: “Signs of movement in the US political deadlock have combined with the steady drip of vaccine news to underpin a market that has yet to breach the highs seen earlier in the month.”
“But the trickle of good news stories has helped to hold markets near to those highs, leaving them well-placed to push higher into December.”