[New York Close] Overcoming Unemployment Fear of 6.6 Million Amid Soaring Oil Prices

[Asia Economy New York=Correspondent Baek Jong-min] The sharp rise in oil prices has subdued the fear of the worst unemployment crisis caused by the novel coronavirus infection (COVID-19).

On the 2nd (local time) at the New York Stock Exchange (NYSE), the Dow Jones Industrial Average rose 469.93 points (2.24%) to close at 21,413.44, the S&P 500 index increased by 56.40 points (2.28%) to 2,526.90, and the Nasdaq closed up 126.73 points (1.72%) at 7,487.31.

On that day, the New York stock market focused on the weekly initial jobless claims in the U.S. released before the opening. When the number of new unemployment benefit claimants last week was announced as 6.64 million, major index futures turned to a downward trend. This figure is not only higher than last week's 3.34 million claimants but also exceeds the Dow Jones forecast of 3.1 million. An unprecedented unemployment crisis occurred with 10 million unemployed over the past two weeks.

The turnaround was achieved by U.S. President Donald Trump. Through Twitter and other channels, he expressed expectations that Saudi Arabia and Russia would announce production cuts of up to 15 million barrels.

One day earlier, oil prices, which had been showing strength as President Trump announced a meeting with oil industry officials, surged over 30% immediately after his remarks. West Texas Intermediate (WTI) crude oil increased intraday by up to 35% and eventually closed at $25.32, up 25% from the previous day. This is the highest one-day increase in oil prices in history.

The rise in oil prices was immediately reflected in the stock market. The Dow Jones index expanded its losses and succeeded in escaping the slump caused by unemployment concerns. The energy sector surged 9.08%, leading the market's rise.

Although the global number of COVID-19 infections surpassed 1 million on the day, this was also overshadowed by the effect of rising oil prices, limiting the negative impact on the market.

The international gold price, a safe-haven asset, returned to an upward trend after five trading days amid accelerating concerns about the economic situation, entering the $1,600 level. On the New York Mercantile Exchange, June delivery gold rose sharply by 2.9% ($46.30) to $1,637.70 per ounce compared to the previous day.

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