The Dow Jones Index exceeded 30,000 points for the first time. The well-known American stock exchange was 1.4 percent higher on Tuesday after two hours of trading. Despite the corona crisis, records are constantly being broken on Wall Street. Positive vaccination news and relief at the transfer of power from President Donald Trump to his Democratic successor Joe Biden sparked the latest rally.
At around 5:29 p.m. Dutch time, the Dow Jones Index, which includes 30 large American companies, was above 30,001 points. The Dow closed over 20,000 points for the first time in early 2017. In January 2018, the limit of 25,000 points was exceeded. Prior to the corona pandemic outbreak, the Dow was also well on its way to hitting 30,000 points. Due to the crisis, the indicator fell below 20,000 points.
The surge in equity markets amid a recession is partly due to historically low interest rates. In order to still achieve a return, stocks are popular with investors. Interest rates remained low after the outbreak of the corona crisis due to all the stimulus measures taken by the central banks, such as the massive buybacks of bonds.
Hopes that effective and reliable vaccines will soon put an end to the global virus outbreak has also led investors to take more risks in recent weeks. The value of gold, widely viewed as a safe investment in times of uncertainty, has steadily declined since its peak in July. A troy ounce of the precious metal was down almost 2 percent on Tuesday at just over $ 1804.
A symbolic success was also celebrated on Tuesday on the oil market. A barrel of American oil was worth more than $ 45 for a short time. This hadn’t happened since the beginning of March when oil prices began to fall due to corona. Hopes for a vaccine have led investors to speculate on rising demand for oil with lockdowns in sight.