The Dow Jones index rally accelerated on Tuesday as investors remained upbeat about the economy. The index rose by about 60 points while the S&P 500 and Nasdaq 100 rose to a new all-time high. The fear and greed index remains in the fear zone while the S&P 500 VIX index has risen to almost $18.
The top-performing DJI stocks this year
The Dow Jones rose as the overall fear in the market about the Delta variant of Covid waned. This happened after the Federal Drug Administration (FDA) delivered the first full approval of the Pfizer and BioNTech vaccine. Therefore, there are signs that the American economy will reopen faster as more states and companies issue their vaccine mandates.
The index also rallied after the recent corporate earnings. Most companies in the Dow Jones reported results that were substantially better than estimates. Analysts expect that the trend will continue in the near term as the economy recovers.
Indeed, data showed that the number of new home sales increased from 701k in June to more than 708k in July. This was a stronger performance than what was expected. And on Monday, data showed that existing home sales numbers were better than estimates.