Stocks soar as Biden transition begins
The Dow was up nearly 400 points, or 1.4%, in mid-morning trading. The blue chip index hit a new all-time high in the process and was closing in on the 30,000 mark.
News came Monday that the General Services Administration is starting the so-called ascertainment process, which allows Trump administration officials to coordinate with the Biden team. And that follows more promising coronavirus vaccine developments on Monday, as well as sources confirming to CNN that former Federal Reserve chair Janet Yellen will be Biden’s nominee for Treasury Secretary. Oil prices rallied as well, lifting big energy stocks like Occidental Petroleum (OXY) and Marathon Oil (MRO). Shares of travel related companies, such as airlines, cruise lines and hotels, also continued to rebound due to hopes of a more normal economy in 2021. Shares of Carnival (CCL), Delta (DAL) and Marriott (MAR) were all higher in early trading.
The euphoric trading frenzy for several momentum investments continued as well Tuesday. Tesla (TSLA), which is set to be added to the S&P 500 next month, surged to a new record high and is now worth more than $500 billion. Cannabis stocks Aurora (ACB), Tilray (TLRY), Canopy Growth (CGC) and Cronos (CRON) also soared again Tuesday, extending their stellar run this month as investors bet that a Biden administration could seek to decriminalize marijuana at a federal level. Several more states also legalized recreational cannabis.
And cryptocurrency darling bitcoin continued to move closer to a record high. Bitcoin prices were hovering around $19,400 Tuesday — just below their December 2017 peak of $19,783.