[New York Close] Rise Amid Signs of Middle East Crisis Easing... Nasdaq Hits All-Time High

[Image source=Reuters Yonhap News]

[Asia Economy New York=Correspondent Kim Bong-su] The U.S. New York stock market rose on the 8th (local time) as the crisis in the Middle East, which had been tense due to escalating conflicts, showed signs of easing following U.S. President Donald Trump's speech urging restraint in escalating tensions with Iran.

On that day at the New York Stock Exchange (NYSE), the Dow Jones Industrial Average closed at 28,745.09, up 161.41 points (0.56%) from the previous day. The S&P 500 index also rose 15.87 points (0.49%) to close at 3,253.05. Notably, the Nasdaq index ended the day at 9,129.24, up 60.66 points (0.67%), setting a new all-time high.

The major indices of the New York stock market surged in the morning after President Trump announced at the White House that he chose economic sanctions over war or additional retaliation. In his speech, President Trump revealed that there were no American casualties from Iran's missile attacks on two U.S. military bases in Iraq and stated that instead of military retaliation, strong additional economic sanctions would be imposed. He particularly added, "Iran is backing down," and said he is ready to accept peace if Iran desires it.

Investors had been concerned about the possibility of escalation between Iran and the U.S. and a sharp rise in international oil prices after the U.S. military killed Qasem Soleimani, commander of the Quds Force of the Iranian Revolutionary Guard Corps, in an airstrike at Baghdad International Airport in Iraq on the 3rd. Especially after Iran attacked two U.S. military bases the previous day, global attention focused on the damage and the U.S. response. However, so far, no casualties have been reported from Iran's attack, and Iraq's oil infrastructure is said to have remained unharmed.

Accordingly, in the New York financial market, oil and gold prices, which had surged sharply the previous day due to rising tensions in the Middle East, plunged. West Texas Intermediate (WTI) crude oil, which had risen more than 4% the previous day, closed at $59.61 per barrel on the New York Mercantile Exchange (NYMEX), down 4.9% ($3.09). This marked the first time since January 16 that prices fell below $60 per barrel. Brent crude for March delivery on the London ICE Futures Exchange also fell 3.30% ($2.25) to $66.02 per barrel as of 4:25 p.m., after rising more than 4% the previous day.

As anxiety eased, preference for safe-haven assets decreased, and international gold prices showed a decline for the first time in 11 trading days. On that day, February delivery gold on the New York Commodity Exchange closed at $1,560.20 per ounce, down 0.9% ($14.10) from the previous day.

On the other hand, Wall Street maintained a hopeful atmosphere based on analyses that escalations between Iran and the U.S. have rarely led to long-term stock market downturns. According to analysis by investment information firm Barclays, the average S&P 500 index rose 3% in the three months following escalations between the two countries. It further increased to an average of 5.5% after six months.

U.S. employment data also showed positive results. According to the employment report released by U.S. information firm ADP on that day, nonfarm private sector jobs increased by 202,000 in December. Most of the job gains during the Christmas season were made by small and medium-sized enterprises. Jobs in medium-sized companies with 50 to 499 employees increased by 88,000, and employment in small businesses with fewer than 50 employees rose by 69,000. Large companies with over 500 employees added 45,000 jobs. This figure far exceeded the Wall Street Journal's (WSJ) forecast of 150,000. By sector, the service sector accounted for most of the gains with 173,000 jobs, overshadowing the manufacturing sector's 29,000.

The number of new nonfarm private sector jobs for November was revised to 124,000, nearly double the previous 67,000. The official U.S. employment statistics for December will be announced on the 10th. Wall Street experts expect 160,000 new jobs and a 3.5% unemployment rate.

Meanwhile, the stock price of U.S. aircraft manufacturer Boeing fell 1.8% the previous day, burdening the Dow Jones index, after a Boeing 737 operated by Ukraine International Airlines crashed at Tehran International Airport in Iran.

This content was produced with the assistance of AI translation services.