Stocks soar as Biden transition is set to begin

Investors have a lot to be thankful for this holiday-shortened week, and stocks posted solid gains Tuesday to extend Monday’s rally.

The Dow was up more than 300 points, or 1%, shortly after the market opened — and it was closing in on both a new all-time high and the 30,000 level.

The latest catalyst: It appears that a formal transition from President Trump to President-elect Joe Biden is finally set to begin.

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 Treasury Secretary nominee.

The S&P 500 and Nasdaq were both higher on Tuesday as well. So was the Russell 2000, an index that is home to smaller American companies that are expected to benefit from a rebound in the US economy.

Oil prices rallied as well, lifting big energy stocks like Occidental Petroleum and Marathon Oil.

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, Delta and Marriott were all higher in early trading.