Stocks Gain on Biden Transition
Stocks gained Tuesday as the US General Services Administration chief - Emily Murphy informed Biden that he can formally begin the hand-over process. Current President Donald Trump tweeted that he informed his team to «do what needs to be done with regard to initial protocols», easing market worries that he would continue to put up a fight, following weeks of legal challenges as to election results.
Of course, the news were combined with the progress made on the COVID-19 vaccine, which gave birth to hopes for a speedier-than-expected global economic recovery. US stocks also got an extra boost after reports that Biden plans to nominate former Federal Reserve Chair - Janet Yellen, to become the next Treasury Secretary.
"Traders are still buying into vaccine news clearance, as the end of the pandemic becomes imaginable. Recent US data restored a bit of confidence that the economy is holding up, despite surging COVID-19 infections and a painful lack of fresh fiscal stimulus. And the news of Yellen's possible nomination to the role of U.S. Treasury Secretary potentially puts a very Fed-friendly uber-dove at the reins of fiscal policy», Kyle Rodda, a market analyst for IG Australia says.
The Dow rose 1.12% overnight, while S&P 500 gained 0.56% and Nasdaq - 0.22%. European markets appeared set to extend optimism in Asian and US equities, with Euro Stoxx 50 and FTSE up 0.52% and 0.42%, respectively.
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