[New York Close] US Stocks Fall on Worries That Economy Is Worse Than Expected

[Image source=Yonhap News]

[Asia Economy New York=Correspondent Baek Jong-min] The New York stock market closed lower amid assessments that economic indicators hit by the novel coronavirus infection (COVID-19) were worse than expected and poor bank earnings. Oil prices plunged below $20.

On the 15th (local time) at the New York Stock Exchange (NYSE), the Dow Jones Industrial Average fell 445.41 points (1.86%) to 23,504.35, the S&P 500 index dropped 62.70 points (2.2%) to 2,783.36, and the Nasdaq closed down 122.56 points (1.44%) at 8,393.18.

Despite President Donald Trump's indication of partial economic activity resumption in some states before May, the market struggled due to worsening bank earnings and poor economic indicators reported before the opening.

According to the U.S. Department of Commerce, retail sales in March plunged 8.7% compared to the previous month, marking the largest drop since related statistics began. Industrial production in March, announced by the Federal Reserve (Fed), also fell 5.4% month-on-month, recording the worst figure since January 1946.

The Empire State Index for April, which reflects the New York regional economy, plummeted from minus (-) 21.5 in the previous month to a record low of -78.2, demonstrating the severity of the current economic situation.

Banks that announced earnings on the day posted the worst performances one after another. Bank of America (BOA), Citigroup, and Goldman Sachs all saw their first-quarter net profits plunge more than 40% year-on-year.

The Fed, through the Beige Book, assessed that the economy across the U.S. contracted suddenly and sharply, and that the economy is expected to worsen in most regions with unpaid leave spreading.

On the day, West Texas Intermediate (WTI) crude oil closed below $20 per barrel for the first time in 18 years since 2002. On the New York Mercantile Exchange (NYMEX), May delivery WTI crude oil fell 1.2% (0.24 dollars) from the previous day to close at $19.87 per barrel. The International Energy Agency (IEA) forecasted that oil demand in April would decrease by an average of 29 million barrels per day compared to the same period last year, which contributed to the decline. News of increased crude oil inventories in the U.S. also fueled the drop in oil prices.

International gold prices fell for the first time in five trading days. June delivery gold closed at $1,740.20 per ounce, down 1.6% (28.70 dollars) from the previous day.

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