The Dow Jones Industrial Average closed above 30,000 for the first time in its history, capping off a 60% rebound from its March nadir.
The top 30 industrials composite rose 454.97 points on Tuesday, or 1.5%, to 30046.24.
Trading was driven by further signs of a COVID-19 vaccine and indications that the Trump Administration is loosening on its election transition stance.
The eight-month climb back from a low of 18,213.65, seen in intraday trading on March 23, came amid the worst global pandemic in a century, which stifled travel and consumer spending.
Calling it a “sacred number,” President Trump delivered a brief statement to reporters in the White House Press Briefing Room “The stock market, Dow Jones Industrial Average just hit 30,000, which is the highest in history. We’ve never broken 30,000. And that’s despite everything that’s taken place with the pandemic. I’m very thrilled with what’s happened on the vaccine front. That’s been absolutely incredible. It’s—nothing like that has ever happened medically. And I think people are acknowledging that, and it’s having a big effect.”
He noted it was the ninth record since the beginning of 2020, and the 48th time it has broken a record during the Trump administration.
“I just want to congratulate all the people within the administration that worked so hard,” Trump added. And most importantly, I want to congratulate the people of our country, because there are no people like you.”
Other indexes rose as well, with the broad market up 57.82 to close at 3635.41, and the NASDAQ up 156.15 to 12036.79.
401k participants
How 401k participants will react, if at all, remains to be seen.
Fixed income was heavily favored by 401k investors in October just prior to the presidential election, and for the first time in its more than 20-year history, the Alight Solutions 401(k) Index saw net trading flows move in that direction for an entire month.
With more than 20 years serving financial markets, John Sullivan is the former editor-in-chief of Investment Advisor magazine and retirement editor of ThinkAdvisor.com. Sullivan is also the former editor of Boomer Market Advisor and Bank Advisor magazines, and has a background in the insurance and investment industries in addition to his journalism roots.
