[New York Close] Excessive Rebound Triggers Cautious Selling Pressure

[Asia Economy New York=Correspondent Baek Jong-min] The US New York stock market failed to sustain gains for the second consecutive day, succumbing to late selling pressure.

[Image source=AP Yonhap News]

On the 7th (local time), the Dow Jones Industrial Average closed at 22,653.86, down 0.12% (26.13 points) from the previous day, the S&P 500 fell 0.16% (4.27 points) to 2,659.41, and the Nasdaq dropped 0.33% (25.98 points) to 7,887.26.

On that day, the New York stock market showed nearly a 5% rise in the morning amid growing expectations for economic reopening, as Treasury Secretary Steven Mnuchin mentioned that reopening parts of the US economy was under consideration. However, in the afternoon, the market trimmed gains and reversed to a decline late in the session following news of a renewed increase in deaths in New York State.

CNBC reported, "Some investors believe that stock prices have risen faster than the economy can recover from the plunge caused by COVID-19, prompting them to sell." Major indices have risen about 20% from the lows recorded on March 23.

In an interview with Fox Business, Mnuchin explained, "President Trump is considering how to reopen parts of the economy. Unlike New York, there are other regions where COVID-19 is not a concern." Larry Kudlow, Director of the White House National Economic Council, also forecasted that the US economy could reopen within 4 to 8 weeks.

On the day, US COVID-19 deaths surpassed 12,000, and cases surged to 380,000. Particularly negative was the report of 731 deaths in New York State, the highest single-day death toll, after two days of stagnation. However, New York Governor Andrew Cuomo positively noted that hospitalization rates are declining.

At the New York Mercantile Exchange (NYMEX), May delivery West Texas Intermediate (WTI) crude oil closed down 9.4% ($2.45) at $23.63 per barrel. WTI had surged over 30% last week on hopes of production cuts but fell 8-9% this week as those expectations diminished, failing to maintain the upward momentum. June Brent crude was trading down 2.81% ($0.93) at $32.12 as of 3:30 PM.

June delivery gold closed at $1,683.70 per ounce, down 0.6% ($10.20) from the previous day.

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