Dow jumps 300 points following Trump transition announcement

Markets opened up for a second day in a row on Tuesday after President Trump gave the go-ahead to begin the formal transition process to President-elect Joe Biden.

The Dow Jones Industrial Average rose 323 points, or 1.1 percent, and the S&P 500 increased 22 points, or 0.6 percent.

Trump on Monday told the General Services Administration to formally ascertain the former vice president’s win, which will release millions of dollars and give Biden’s transition team access to government resources in preparation for the new administration. The president has refused to concede the election, however.

Trump’s call came 16 days after every major network called the race for Biden. The president’s claims of election fraud have made little headway in the courts, leading a growing chorus of Republicans to call for the transition to begin as states certified their results.

Last week, markets suffered as the reality of rampant COVID-19 spread set in, but investors have been more focused on positive developments since Biden’s election, rising on good news on vaccine candidates’ efficacy and reports about Biden’s traditional Cabinet picks, such as former Federal Reserve Chair Janet Yellen’s selection as his Treasury secretary.