[New York Close] Stock Market Lacks Finishing Strength... Market Fatigue Sets In

[Asia Economy New York=Correspondent Baek Jong-min] The US New York stock market failed to rise for two consecutive days. Amid the novel coronavirus infection (COVID-19) crisis, it only confirmed the reality that the market lacks the stamina to attempt consecutive gains.

Brokers at the New York Stock Exchange gather and converse on the 20th, the last trading day before the floor trading suspension takes effect.
[Image source=Reuters Yonhap News]

On the 20th (local time) at the New York stock market, the Dow Jones Industrial Average fell 913.21 points (4.55%) from the previous day to close at 19,173.98, the S&P 500 index dropped 104.47 points (4.34%) to 2,304.92, and the Nasdaq index declined 271.06 points (3.79%) to 6,879.52.

The major indices of the New York stock market showed an early rise at the opening and challenged a rare two-day consecutive increase but ended in vain.

In the case of the Dow index, it showed a drop of about 4,000 points, or 17.3%, just this week. On a weekly basis, this is the largest decline since October 2018 (-18.2%) during the global financial crisis.

3M announced an expansion of production of N95 medical masks, but its stock price fell by 9.18%, leading the Dow's decline.

It is evaluated that investor sentiment worsened as a full work-from-home order was issued for New York State, where the New York Stock Exchange is located. News that a clearinghouse of the Chicago Mercantile Exchange (CME) could not meet capital requirements also fueled the index decline.

It is also analyzed that the unstable trend of international oil prices increased market volatility. On this day at the New York Mercantile Exchange (NYMEX), April delivery West Texas Intermediate (WTI) crude oil closed at $22.53 per barrel, down 10.6% ($2.69). Despite a 23.8% ($4.85) surge the previous day, the oil market still showed volatility.

April delivery gold rose 0.4% ($5.30) to $1,484.60 per ounce compared to the previous day. Gold has fallen about 2% just this week.

Meanwhile, the New York Stock Exchange will suspend floor trading and conduct trading only electronically starting next week due to the COVID-19 crisis.

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