[New York Close] All Three Major Indexes Surge on COVID-19 Treatment Hopes

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Hyunwoo Lee] The New York stock market closed sharply higher across all three major indices, buoyed by optimism over the development of a treatment for COVID-19 and the Federal Open Market Committee's (FOMC) decision to maintain zero interest rates.

On the 29th (local time) at the New York Stock Exchange (NYSE), the Dow Jones Industrial Average surged 532.31 points (2.21%) from the previous close to finish at 24,633.86. The Standard & Poor's (S&P) 500 index rose 76.12 points (2.66%) to 2,939.51, and the Nasdaq index jumped 306.98 points (3.57%) to close at 8,914.71.

On this day, news related to COVID-19 treatments acted as a strong positive catalyst for the New York stock market. Gilead Sciences announced positive clinical trial results for remdesivir in severe COVID-19 patients. The New York Times (NYT) also reported that the U.S. Food and Drug Administration (FDA) is planning to grant emergency approval for the use of remdesivir. According to CNBC, an FDA spokesperson stated, "We are discussing how to make remdesivir available to patients as quickly as possible." Dr. Anthony Fauci, director of the U.S. National Institute of Allergy and Infectious Diseases (NIAID), also said that remdesivir showed positive effects. NIAID is conducting clinical trials of remdesivir that meet conditions such as placebo-controlled comparisons. The development of treatments has raised expectations for economic normalization, which drove the rise in indices.

The confirmed commitment to stimulus by authorities following the FOMC results also contributed to the upward trend. As expected by the market, the FOMC kept interest rates at zero. Although no additional stimulus measures were announced, the commitment to economic support was confirmed. Federal Reserve Chairman Jerome Powell said that additional stimulus is necessary for the economy and stated, "We can deploy additional policies to the absolute limit for a strong recovery." He added, "The Fed is committed to using all tools strongly, aggressively, and proactively."

Key indicators such as U.S. first-quarter growth and corporate earnings fell short of market expectations. The U.S. Department of Commerce reported that the U.S. gross domestic product (GDP) growth rate for the first quarter was -4.8% annualized, the lowest since the fourth quarter of 2008 during the financial crisis. This was lower than the market expectation of -3.5% compiled by The Wall Street Journal (WSJ). However, the shock was limited due to positive factors such as optimism about COVID-19 treatments and confirmed commitment to stimulus by authorities.

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