Wall St. Trades in Record Territory as Biden Transition Begins: Live Updates

Stocks on Wall Street climbed for a second day on Tuesday, buoyed by news that President-elect Joseph R. Biden Jr. had chosen a former Federal Reserve chair, Janet L. Yellen, to be the next Treasury secretary, and as the Trump administration’s efforts to contest the election were further diminished as several key states certified Mr. Biden’s victory.

The SP 500 rose about 1.6 percent, and by late morning was trading above its most recent closing record of 3,626.91, reached on Nov. 16. The Dow Jones industrial average rose to a high, crossing above the 30,000 mark for the first time.

President Trump, who has consistently warned that markets would tumble if he lost re-election, took credit for the record on Tuesday.

“The stock market’s just broken 30,000 — never been broken, that number,” Mr. Trump said in brief remarks at the White House. “That’s a sacred number, 30,000; nobody thought they’d ever see it.”

Ms. Yellen is widely expected to support government intervention to bolster the economy, and the gains on Tuesday reflected optimism about the outlook for growth, with economically sensitive companies among day’s the best performers. The Russell 2000 index of small stocks, which are geared toward domestic growth in the United States, jumped 2 percent. An index of bank stocks gained more than 4 percent.

Airlines, carmakers and companies positioned to benefit from a renewed push for deficit-financed federal spending — such as asphalt makers — all rose.

In energy markets, West Texas Intermediate futures surged more than 4 percent to over $45 a barrel, the highest since early March.

Ms. Yellen said last month that the economy needed “extraordinary fiscal support” while the pandemic was still affecting it. After two decades at the central bank, analysts say, she would be able to foster a close relationship between the two institutions.

“The former Fed chair is a welcome choice for investors, increasing the chances of strong coordination of fiscal and monetary policy,” analysts at UBS Global Wealth Management wrote in a note. “Relations between the Fed and Treasury have recently been strained by moves by the Trump administration to close some Fed emergency lending facilities.”

Despite a broad consensus that more support for growth is needed, the American economy shows pockets of strength. Fresh data on Tuesday showed the housing market continued to be robust in recent months. A Case-Shiller index of home prices in major American cities jumped 6.6 percent.

It also helped sentiment that, after weeks of delaying, Mr. Trump said on Monday that he accepted the decision by the General Services Administration to allow a transition to proceed. Although he did not concede the race, the start of the transition, which came after Michigan on Monday night certified Mr. Biden as its winner, further reduces political uncertainty that has weighed on investors. On Tuesday, Pennsylvania also certified its election results in favor of Mr. Biden.

Shares in Europe and Asia were also higher. The Stoxx Europe 600 index was 0.8 percent higher, led by gains in financial and energy stocks. In Britain, the FTSE 100 index climbed 1.5 percent.

Aviation and hospitality stocks were among the big gainers in the FTSE 100 after England said it would cut its 14-day quarantine time to five days if newly arrived visitors got a negative coronavirus test result. Shares in IAG, which owns British Airways, easyJet and Whitbread, a hotel and restaurant group, were all sharply higher.

Article source: https://www.nytimes.com/live/2020/11/24/business/us-economy-coronavirus