This year, we have witnessed the US stock market crash several times, but the US stock market still set a new high! Just last night, the Dow Jones index broke through the heart of 30000 points, reaching an all-time high.
The Dow Jones index of the US stock market broke through 30000 points for the first time
Set a new record
The Dow Jones industrial average rose above the 30000 mark for the first time in the history of the United States. The enthusiasm of the stock market was rekindled due to the hope of a new crown vaccine and the economy continued to move towards normalization.
Nearly four years have passed since the index first broke through 20000. For technical analysts, breaking through such a large integer level is regarded as the potential driving force of market sentiment, which is conducive to bull chasing.
By the end of the day, the Dow rose 1.54% to 30046.24, breaking the 30000 mark for the first time in history. The standard & Poors 500 index rose 1.62% to 3635.41 and the NASDAQ rose 1.31% to 12036.79.
Founded in 1896, the Dow Jones industrial average is composed of 30 blue chips in the U.S. stock market. It has long been regarded as a barometer of the U.S. economy. The index broke through the 20000 point mark for the first time in January 2017, and reached the previous record high of 29964.29 points on the 16th of this month.
In addition, the safe haven asset gold dived again. COMEX gold futures fell 1.75% to $1805.6/oz on Tuesday, falling for two days to a new low in four months. Gold prices fell sharply in a row as progress on the new crown vaccine and hopes that the White House would begin a power transfer spurred investors to rush for riskier assets.
International oil prices rose on Tuesday, with NYMEX crude oil futures up 4.06% to $44.81/barrel, a new high in more than eight months, and oil distribution rose 3.91% to $47.84/barrel. Boosted by the progress of vaccines and the impending start of the handover process in the United States.
Financial and energy stocks led gains
Performance differentiation of China capital stocks
On November 24, large technology stocks in the US rose collectively, with apple up 1.16%, Amazon 0.63%, NYSE 1.31%, Google 2.1%, Facebook 3.16% and Microsoft 1.78%.
Energy stocks in the US rose collectively, with ExxonMobil up 6.68%, Chevron up 5.03%, ConocoPhillips up 3.98%, Schlumberger up 2.82% and occidental oil up 6.47%.
Bank stocks in the United States rose collectively, with JPMorgan Chase up 4.62%, Goldman Sachs up 3.95%, Citigroup up 7%, Morgan Stanley up 5.51%, Bank of America up 5.81%, Wells Fargo up 8.75%.
On Tuesday, renren.com rose by 39.99%, while those of weidou.com fell by 15.2%, while those of weiduobao fell by 77.2% and 58.2% respectively.
Why did it break through 30000 points?
Market analysis is related to the following factors.
1. White House handover officially begins
On Monday, the U.S. General Services Administration (GSA) informed Biden that the trump administration was ready to officially open the process of U.S. presidential power transition. The news was obtained by CNN from a letter sent by the director of the General Services Administration, Emily Murphy, on the afternoon of the 23rd. The uncertainty of the U.S. election has been basically eliminated, and Wall Street expects that the multilateralism of Biden administration will benefit the market.
The report pointed out that the move will officially start the transition process, allowing current administration officials to coordinate with the incoming Biden team, and the U.S. Federal general service agency will provide millions of dollars of government funds for the transition.
Murphy said the White House did not put pressure on her to postpone the power transition, nor did she make a decision out of fear or partiality.. Please note that I have made decisions independently of the law and the facts available, she wrote. I have never been under direct or indirect pressure from any executive, including those working in the White House or the GSA, to determine the content or timing of my decisions. Obviously, I didnt get any instructions to delay the decision.
The GSA cannot determine the outcome of legal disputes and recount, or the reasonableness of such litigation, Murphy wrote in the letter. These are issues that the constitution, federal and state laws leave to the electoral certification process and to courts with appropriate jurisdiction. I do not believe that agencies responsible for improving federal procurement and property management should place themselves above the constitution. I strongly urge Congress to consider amending the act.
Trump tweeted that he appreciated Emily Murphys dedication and loyalty to the country, and said she had been harassed, threatened and abused. He did not want to see this happen to Murphy, her family and GSA personnel. Trump also said: our litigation continues and we will continue to work hard. I believe we will win! But in the best interests of our country, I suggest that Emily and her team do something about the initial agreement and tell my team to do the same.
2. Yellen will be nominated as finance minister
U.S. President elect Joe Biden plans to nominate former Federal Reserve Chairman Janet Yellen as Treasury Secretary to lead the U.S. economic recovery after the new outbreak, the Wall Street Journal quoted people close to the situation on Monday.
After the news of Yellens nomination as Treasury Secretary spread, Wall Street was in a state of euphoria. The title from CNBC uses the word cheerer.
The former Fed chairman, who has no qualms about stimulus measures, will run the Biden administrations economic policy.
Since 2004, Yellen has been chairman of the San Francisco fed for six years. In 2010, she returned to Washington to become the second in command of the Federal Reserve under Mr. Bernanke. From 2014 to 2018, Yellen succeeded Mr. Ben Bernanke as chairman of the Federal Reserve.
Within the Fed, Yellen has an unusual sense of economic prospects. She is one of the people who prompted the Federal Reserve to respond more positively to the housing bubble burst after 2008.
Yellen has been supportive of more fiscal stimulus, especially aid to state and local governments. On September 28th, Yellen publicly said, many people are struggling, and the economy needs fiscal spending. At a forum in November, Yellen reiterated the importance of further help from Congress for the recovery of the U.S. economy. Because after the Federal Reserve cut interest rates to near zero, the remaining monetary instruments are limited.
Tom Graff, head of fixed income at Brown advisory, said: Yellen should be pushing for aggressive fiscal policy, and given her reputation in Washington, she will be the most effective advocate of fiscal expansion that Biden can find.
Moreover, the consensus on policy and a long history of cooperation between Yellen and Powell are expected to create an era of sustained coordination of monetary and fiscal policies and repair the rift between the US Treasury and the Federal Reserve. An important reason for Powells previous appointment as chairman of the Federal Reserve was that he was able to ensure, to a certain extent, the continuity of policies in the era of the Federal Reserve.
According to the preliminary results of a large-scale trial, the covid-19 vaccine developed by Oxford University and AstraZeneca can prevent most human infections, but it fails to reach the high level of Pfizer and Moderna. Early analysis of the data showed that the vaccine protected an average of 70% of the study participants. AstraZeneca said there were no serious adverse safety events and the vaccine was well tolerated in both dose groups. There were no severe cases of covid-19 and none of the participants were hospitalized. Although less effective, the UK vaccine has some advantages in distribution. The other two vaccines must be cryopreserved, while the AstraZeneca Oxford vaccine can be kept at refrigerator temperature, making it easier to transport and store globally, especially in low - and middle-income countries. In addition, the cost of the vaccine may be lower.
The United States is expected to start the first batch of new crown vaccines in less than three weeks in the next three weeks, and may immunize 70% of the nations population with the new crown vaccine by may, US Eastern time said Sunday. On December 11 or 12, the first people in each state are expected to be vaccinated [and] state health authorities will tell us where to distribute the vaccine, said slaoui. It is reported that the FDAs new coronavirus vaccine Advisory Committee is scheduled to meet on December 10 to review the vaccine data and discuss whether to approve the vaccine for marketing, which will be distributed as soon as December 11. According to previous reports, the committee will also consider the safety and effectiveness of the vaccine in all ethnic, ethnic and age groups, and make recommendations on the target population of vaccination.
Teslas market value has passed the $500 billion mark
Musks wealth ranks second in the world
As the news that it will be included in the S & P 500 index has stimulated investors buying enthusiasm, Teslas share price has repeatedly set new record highs, and its market value has exceeded the $500 billion mark for the first time in history.
The electric car companys share price is up 550% this year, further accelerating after the S & P Dow Jones index announced on Monday that it would include Tesla in the S & P 500. Teslas surge has boosted the net worth of its co-founder, Elon Musk, by $100.3 billion this year, overtaking Bill Gates as the worlds second richest man.
Pennsylvania and Nevada confirm Bidens victory
The White House approved the daily presidential briefing to the Biden team
Pennsylvania governor Tom Wolfe said on social media on the 24th local time that the Secretary of state confirmed Bidens victory in the 2020 presidential election. The governor himself has signed the relevant certification documents, and said that the states electoral counting work is free and fair.
ABC just heard that the office of the director of national intelligence (ODNI) said the White House approved the daily presidential briefing to Bidens team, as part of supporting the transition..
Capitol Hill said a White House official confirmed that trump, who refused to recognize and continued to seek to challenge the election results in court, signed an agreement to share the briefing.. But its not clear when Biden will receive his first presidential daily briefing.
On the 23rd local time, US General Administration Director General Murphy informed President-elect Biden and his team that they are ready to start the process of regime transition, and will release more than 7 million US dollars to Biden as transitional funds.
Source: Ren Hui, editor in charge of China Fund News_ NBJ9607