Posted on Nov 24, 2020 at 6:14 PMUpdated Nov 24, 2020 6:47 PM
The crisis is already in the rearview mirror. The famous Dow Jones index crossed for the first time in its history the threshold of 30,000 points Tuesday in session. It was up 1.55% at the end of the day, recording the best performance of the main US indices. The larger S&P 500 climbed 1.39% and the high tech Nasdaq rose 1.01%.
The good news has followed one another since the beginning of the month for investors. The result of the US presidential election is now clear and the political transition has started, which reduces uncertainty in the short term. Investors thus welcomed the prospect of Janet Yellen’s arrival at the US Treasury on Tuesday. The former Federal Reserve chairperson has spoken in favor of a significant fiscal stimulus in the past. On the health front, promising announcements from pharmaceutical companies have raised hopes of seeing a vaccine deployed quickly to fight the epidemic.
Best month since 1987
The Dow Jones index, which is highly exposed to industrial sectors, has benefited greatly from these trends. It is up more than 13% since the start of the month, on its way to its biggest monthly increase since 1987. Boeing, one of the highest weightings in the index, jumped 5% during the session after having been widely heckled this year. Similarly, Chevron gained more than 3%, as did JP Morgan and American Express.
The good performance of the Dow Jones since the beginning of the month has enabled it to narrow the gap with the other American indices. However, it remains in decline with a gain of 5% in 2020, against a rise of 12% for the S&P 500 and a jump of 33% for the Nasdaq. The latter was driven by investor appetites for the technology sector this year, starting with “Big Tech”. Microsoft, Google and Facebook all gained over 30% in 2020, while Apple climbed 57% and Amazon by 68%.
Elon Musk second world fortune
But none of them come close to Tesla’s ankle. The producer of electric vehicles has been acclaimed by investors. Its price has soared 547% since the start of the year, pushing its capitalization from 75 billion dollars to more than 510 billion. Tesla is preparing to enter the S & P 500 with the sixth largest valuation in the index, just behind Warren Buffett’s conglomerate, Berkshire Hathaway. At the start of the year, the company weighed as much as the hundredth largest in the index.
Enough to ignite the fortune of its founder, Elon Musk. It has swelled by more than $ 100 billion since the start of the year. The famous South African-born entrepreneur is now the second richest man in the world, ahead of Bill Gates, according to data compiled by the Bloomberg agency.