Dow Hits 30,000 As Bulls Run Rampant

US stocks rallied on Tuesday and the Dow breached the 30,000 level for the first time, as investors anticipated a 2021 economic recovery on coronavirus vaccine progress and the formal clearance for President-elect Joe Biden's transition to the White House.

Of the 11 major S&P sectors, 10 gained ground, led by economically sensitive stocks such as financials, materials and energy, while industrials hit a record.

US President Donald Trump finally gave the green light for the formal transfer of power to begin on Monday, a process that was delayed for weeks despite Democrat Joe Biden emerging as the clear winner in the US elections.

Sentiment this week was also boosted by reports that Biden planned to nominate former Federal Reserve Chair Janet Yellen as Treasury Secretary, which could shift the focus heavily toward efforts to tackle growing economic inequality.

Recent data suggesting a Covid-19 vaccine could be available before the end of the year has put the S&P 500 on course for its best monthly performance since April and sparked demand for value-linked stocks that were hammered following the coronavirus-driven crash earlier this year.

"A little bit of decreasing uncertainty on the election front, the market seems pretty favorable on the Yellen announcement, it just seems like one of those good days where all things are moving a little higher," said Ross Mayfield, investment strategy analyst at Baird.

"If 2020 has shown us anything it is that stock markets have a tremendous ability to look past bad news if there is sun on the horizon."

The Dow Jones Industrial Average rose 1.54 percent, to 30,046, the S&P 500 gained 1.62 percent, to 3,635 and the Nasdaq Composite added 1.31 percent, to 12,037.

The Dow rose as high as 30,117 during the session and the S&P 500 also closed at a record high. While the 30,000 mark represents a psychological milestone, it means little to professional investors.

Electric-car maker Tesla Inc jumped 6.43 percent to boost its market value to over US$500 billion, as investors lapped up its shares in the run-up to its addition to the S&P 500 index.

Boeing gained 3.29 percent after European regulators gave draft approval to its 737 MAX jets, paving the way for a formal flight clearance in January.

BlackRock Inc, the world's largest asset manager, on Monday upgraded US equities to "overweight," turning bullish on quality large-cap technology companies and small cap firms that tend to perform well during a cyclical upswing. (Reuters)