[New York Close] US Economic Stimulus Watch Leads to Rebound

[Asia Economy New York=Correspondent Baek Jong-min] The New York stock market rebounded sharply on the day following a plunge, fueled by expectations for the U.S. government's measures to overcome the damage caused by the novel coronavirus infection (COVID-19).

On the 10th (local time) at the New York Stock Exchange (NYSE), the Dow Jones Industrial Average surged 4.89% (1,167.14 points) to close at 25,018.16, the S&P 500 index rose 4.94% (135.67 points) to 2,882.23, and the Nasdaq index also jumped 4.95% (393.58 points) to finish at 8,344.25.

On this day, the market focused on the U.S. government's fiscal policy response to COVID-19 and exhibited an extremely cautious trading pattern. The Dow index rose nearly 1,000 points in early trading, then turned downward, and surged again near the close, riding a rollercoaster.

U.S. President Donald Trump had announced at a press conference the previous day that he would unveil fiscal policies to respond to COVID-19, including payroll tax cuts, on this day. However, when a media outlet reported that there would be no announcement, investor sentiment sharply declined, causing confusion.

After reports emerged that President Trump personally met with Senate Republican lawmakers and proposed lowering the payroll tax to 0% for the remainder of the year, the market surged. This ultimately indicates that the stock market is merely reacting to government signals and suggests the possibility of further declines if the measures fall short of expectations.

President Trump also expressed willingness to support shale oil companies hit by the oil price crash and industries particularly affected by COVID-19, such as airlines and cruise lines.

Amid spreading fear sentiment, the yield on the U.S. 10-year Treasury note, which had recently fallen to the 0.3% range, surged to the 0.7% range on this day, showing a relaxation in safe-haven demand. Gold prices also closed down 0.9% ($15.40) at $1,660.30 per ounce. The fear index (VIX) fell by 13%.

The rebound in international oil prices also drove the stock market rise on this day. West Texas Intermediate (WTI) crude oil rose 10.4% ($3.23) from the previous day to $34.36.

Russian Interfax news agency reported that Energy Minister Aleksandr Novak made remarks leaving room for additional negotiations with the Organization of the Petroleum Exporting Countries (OPEC) to stabilize the market. The White House also reported that President Trump spoke with Saudi Crown Prince Mohammed bin Salman the previous day to discuss oil price issues and other matters.

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