Despite rising Coronavirus infection rates and a contested election, the Dow Jones Industrial Average has reached a new stock market record. The index hit 30,000 points on Tuesday, closing at 30,046.24 points, an increase of 1.54% over the previous day.

Learn what’s driving confidence in the markets and how this could affect investors and the wider economy.

Presidential Transition and Dow Jones Stock Confidence

Former Vice President Joe Biden is expected to be declared the winner of the Presidential Election.

While many states are yet to certify their results, key battlegrounds like Michigan, Nevada, Arizona, and Georgia have already done so. President Trump still contests the election results, but legal arguments have so far failed in court, due to a lack of strong evidence supporting claims of voter fraud and irregularities.

The General Services Administration, the government agency responsible for aiding the transition of power, has formally recognized Joe Biden as the apparent winner of the election. This gives Biden and his team access to intelligence briefings and government agencies ahead of the expected January transition.

Investors were relieved by the news, following three weeks of strong rhetoric and a refusal from the White House to accept Biden as the winner of the popular vote and electoral college. President Trump has still not conceded, but it looks unlikely that legal efforts will overturn any of the races called for Biden.

Coronavirus Vaccines Welcomed by Wall Street

In addition to progress on the election front, investors are also emboldened by the recent announcements of several Coronavirus Vaccines that could become available in the U.S. later this year.

Pfizer, Moderna, and AstraZeneca-Oxford have all announced viable vaccines with efficacy rates above 90%. The AstraZeneca-Oxford vaccine is arguably the most promising as it is cheaper and easier to store and transport than the vaccines developed by Pfizer and Moderna.

These vaccines are important because they will help to limit the economic impact caused by the Coronavirus Pandemic. Initial doses, if approved by the FDA, will be given to frontline workers like healthcare professionals and emergency service workers. Public availability will likely come in the first quarter of 2021.

Why Does the Dow Jones Matter for the Economy?

The stock market isn’t the economy, but it does have important parallels. Countless Americans are invested in stocks directly or indirectly through retirement funds and other financial products. When the stock market performs well, returns increase and more people can secure their futures.

Even those who aren’t directly invested in the market can take confidence from the fact that America is moving towards the end of the year-long health crisis, and that a smooth Presidential transition is likely to take place early in the new year.