Dow Jones opens up again after record daily high as good news on vaccines buoys market
Buoyant investor confidence pushes market up for fifth day
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Your support makes all the difference.The Dow Jones Industrial Average hit a new record high at the opening on Thursday in New York, breaking its previous record set on Wednesday when it closed above 32,000 for the first time ever.
Positive news on the rollout of vaccines and new data showing that inflation is under control has buoyed investor confidence about a robust economic recovery in the US as herd immunity looks possible by summer.
At the opening bell on Wall Street, the Dow jumped by more than 100 points and was at 32,519 at 10am. The tech-focused Nasdaq and S&P500 also opened up on the previous close.
With Congress passing the $1.9 trillion Covid relief bill — the American Rescue Plan — investor confidence increased. Stimulus checks are likely to appear in many Americans’ bank accounts by the end of the month, and cities and states’ fears of huge budget shortfalls are largely assuaged.
President Joe Biden will sign the bill into law tomorrow after his first prime time speech to the nation on Thursday evening. While the focus of the bill is giving money to governments and individuals, some business sectors also benefit — namely restaurants, event venues, and airlines.
“The inflation scare that we saw last week has subsided as bond yields calm down,” said Art Hogan, chief market strategist at National Securities in New York.
“The market sentiment is turning more optimistic as we get better results from vaccines that help towards a faster pace of herd immunity.”
Fewer than expected Americans filed new claims for unemployment benefits last week as an improving public health environment allows more segments of the economy to reopen.
Today marks a year since the World Health Organisation officially declared that the spread of Covid-19 had reached pandemic proportions, causing much of the US economy to shut down.
With additional reporting from Reuters
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