The Dow Jones Industrial Average is closing in on a record high, with the index gaining more than 700 points over the past 24 hours, as traders try to buy into the news that President-elect Donald Trump has chosen Jeff Bezos, Amazon’s founder and CEO, as his pick for secretary of state.
The stock is up more than 200 points over a four-day period last week.
The Dow has topped 17,000 points this year for the first time in its history.
It is up nearly 1,000 per cent over the last three months.
Trump has called on Amazon to create “a nation of robots.”
“Amazon is doing amazing work for our country and for our planet, and it’s been amazing to see the company’s stock rise,” said Trump on Twitter.
“If I win the election, I will give them a huge tax cut and they will create thousands of new jobs in our country.”
Bezos has long said he would not seek a second term in the Oval Office.
In fact, he has never been elected to public office in his life.
He has said he intends to stay in the private sector and sell his stock if he is elected president.
A spokesman for Bezos declined to comment on Trump’s announcement, and Amazon did not respond to a request for comment.
“We are watching closely the latest developments on the Trump transition,” said Jeff Bezos in a statement.
“I have been watching closely to see how this situation develops.
As we do, I expect the stock market to rally, and we will make sure the company and the American people benefit.”
The Dow’s rally came as the Dow Jones industrial average slipped more than 600 points, wiping out most of the gains made by the S&P 500 index over the week.
Analysts said the market could be poised for another correction in the coming days.
“The Dow is in a bear market,” said Robert Osterman, an investment strategist at BMO Capital Markets.
“There is no way it can stay there.”
The S&p 500 fell more than 400 points, while the Nasdaq composite fell more 100 points, as investors weighed more than a dozen companies on Trump and Bezos.
Investors have also been paying attention to other markets, including the European Union, which has seen a sharp increase in its bond yields this year.
The Bank of Japan, which was in a state of deflation for several years, began to slow down its monetary stimulus in March, but has been unable to get enough stimulus into the system.
“It’s a bubble, and I think it’s going to burst,” said Osterma, of BMO.
“They’re doing a lot of things wrong in Europe right now.
It’s going take a few years to sort out.
If you look at the Fed’s balance sheet, the interest rates it’s paying on its debt are just absurd.”