[New York Close] Oil Prices Rebound 19% Up in Three Days After Effect

[Image source=Reuters Yonhap News]

[Asia Economy New York=Correspondent Baek Jong-min] The New York stock market rebounded after three days, buoyed by rising oil prices.

On the 22nd (local time) at the New York Stock Exchange, the Dow Jones Industrial Average rose 456.94 points (1.99%) to close at 23,475.82, the S&P 500 index increased by 62.75 points (2.29%) to 2,799.31, and the Nasdaq index gained 232.15 points (2.81%) to finish at 8,495.38.

The New York stock market had shown a simultaneous decline as international oil prices fluctuated for two consecutive days, but on this day, it succeeded in riding a pleasant upward trend.

The oil prices that had been constraining the market encouraged a rebound this day. On the New York Mercantile Exchange (NYMEX), June delivery West Texas Intermediate (WTI) crude oil closed at $13.78 per barrel, up 19.1% ($2.21). During the session, it even showed an increase rate in the 30% range. North Sea Brent crude also traded at $20.58, returning to the $20 range.

While the WTI's plunge into negative territory may have triggered a technical rebound amid extreme turmoil, it is widely regarded that President Donald Trump's warning of conflict with Iran was the decisive factor behind the rise.

President Trump stated on Twitter that morning, "If Iranian armed speedboats harass our ships at sea, I have instructed to shoot them down and destroy them." In particular, Iran's unveiling of a satellite launch scene on the same day is also interpreted as a factor that provoked President Trump.

US CNBC interpreted, "As international oil prices rebounded, market anxiety somewhat eased."

Major US officials also expressed optimism about the rise in oil prices. Larry Kudlow, director of the White House National Economic Council, diagnosed that international oil prices would rebound once the economy restarts and that the oil price crash was a temporary phenomenon. Treasury Secretary Steven Mnuchin also expressed expectations for rising oil prices.

The feared impact of corporate earnings was not significant. Delta Air Lines, hit by COVID-19, recorded its first quarterly loss in about five years but posted a smaller loss than market expectations, resulting in only about a 2.7% decline. According to financial information firm Refinitiv, among the S&P 500 companies, 84 have reported earnings, and 67% of them posted results exceeding market expectations.

International gold prices also recovered to the $1,700 range. On this day at the New York Commodity Exchange, June delivery gold closed at $1,738.30 per ounce, up 3.0% ($50.50), raising expectations for further gains.

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