Investors were encouraged by news about the vaccine and the official start of the transition process.
US stock index futures showed gains on Tuesday, while official approval to begin the transfer of power ended political uncertainty and bolstered hopes for an economic recovery next year.
Amid signs that a coronavirus vaccine may be ready before the end of the year, the S&P 500 index moves towards the highest November figures since 1980. There is an increase in demand for cyclical stocks and industrial stocks, which suffered heavy losses earlier this year.
Dow futures jumped 1 percent in early trading, outperforming Nasdaq 100 futures, as investors again decided to abandon the tech heavyweights considered the safest assets during the recession.
The Office of General Services said Monday that President-elect Joe Biden’s team might officially begin the transition process.
Investor sentiment was also positively affected by reports that Biden plans to appoint former Fed chair Janet Yellen as Treasury Secretary, which may shift to a more progressive approach to the fight against economic inequality.
By 7:02 a.m., e-mini Dow futures were up 280 points, or 0.95 percent, the S&P 500 was up 25 points, or 0.7 percent, and the Nasdaq 100 was up 36 points, or 0.3 percent.
Tesla shares rose 4.2 percent in the premarket, bringing the market capitalization to $ 500 billion by the time trading opened.
Investors are waiting for November data on consumer confidence, which will be presented later on Tuesday. However, it is expected that the volume of trading operations will be less due to the shortened holiday week.