Dow Jones Opens 300 Points Jump Welcomes US Political Transition

Jakarta, CNBC Indonesia – United States stock exchanges (US) opened into positive territory on Tuesday (11/24/2020) trading, welcoming news that the administration of US President Donald Trump gave the green light for the transition to Joe Biden’s administration.

The Dow Jones Industrial Average jumped 300 points (+ 1%) at 8:30 am local time (21:30 WIT) and 18 minutes later to 306.3 points (+ 1.03%) to 29,897.53. The S&P 500 index grew 22.6 points (+ 0.63%) to 3,600.21 but the Nasdaq receded 4.8 points (-0.04%) to 11,875.8.

Boeing and Chevron shares rose 3% and 2.6%, respectively, while the energy sector index took the lead with a 2.8% jump.

The US stock index jump came after Public Service Chief Emily Murphy told president-elect Joe Biden that the Trump administration is providing the resources needed for the transition in the White House.

Murphy declared the decision to follow up on Biden’s victory weeks after the presidential election (pilpres) on November 3. US President Donald Trump admitted in a tweet that he approved of the move even though he was still “fighting it out.”

Biden’s decision to appoint former Fed Chair Janet Yellen to become Finance Minister also boosted positive sentiment among investors. If the Senate approves, Yellen will become the first woman to hold the post in the United States.

“I think this is a strong signal that Biden will focus on rebuilding the economy rather than pushing for aggressive regulation … Yellen will be an effective voice for additional fiscal support,” Ed Mills analyst Raymond James was quoted as saying CNBC International.

On Monday, the Dow Jones index was up more than 300 points while the S&P 500 index gained 0.6% and the Nasdaq added only 0.2%. The Russell 2000 small market-cap stock index jumped 1.9%.

Investors welcomed the good news from AstraZeneca, which stated that the average vaccine efficacy reached 70%. This news is the positive result of the development of the Pfizer-BioNTech and Moderna vaccines.

Covid-19 data is also still being watched. The CNBC Analysis report stated that the daily average of new Covid-19 infections in the US on Thursday set a new record high daily average of 170,855 in the past week.


[Gambas:Video CNBC]



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