[New York Stock Market] Dow Falls 1.17% Amid US Recession Concerns...

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Kwon Jaehee] The New York stock market closed lower amid growing concerns over a recession due to the continuation of massive unemployment in the United States.

On the 30th (local time) at the New York Stock Exchange (NYSE), the Dow Jones Industrial Average fell 1.17% (288.14 points) from the previous session to close at 24,345.72.

The Standard & Poor's (S&P) index also dropped 0.92% (27.08 points) to 2,912.43, and the Nasdaq closed down 0.28% (25.16 points) at 8,889.55.

The New York market had recorded gains of 2-3% the previous day on news that the U.S. Food and Drug Administration (FDA) was close to approving remdesivir, a COVID-19 treatment drug that raised expectations, but deteriorating economic indicators dampened investor sentiment, leading to a return to a downward trend.

The U.S. Department of Labor announced that new unemployment claims for the week of April 19-25 reached 3.849 million. Although this was a decrease from the previous week, it was still higher than Wall Street's forecast of 3.5 million.

Additionally, concerns grew as over 30 million Americans applied for unemployment benefits over the past six weeks due to the COVID-19 crisis, raising fears of a soaring unemployment rate.

The U.S. first-quarter growth rate was also worse than expected, at minus (-) 4.8%, which had an impact.

Moreover, weak indicators continued, such as a record 7.5% drop in U.S. personal consumption expenditures (PCE) in March. Consumption is the biggest pillar of the U.S. economy.

The Federal Reserve (Fed) announced it would expand the range of companies eligible for the so-called 'Main Street Lending' program, a corporate loan initiative.

Following the Fed's announcement, major indices temporarily rebounded, but the effect did not last long as it was a limited supplementary measure.

Reports that the U.S. is considering retaliatory measures against China to hold it responsible for the COVID-19 outbreak also dampened investor sentiment.

On the other hand, strong earnings from major tech companies provided support to the market, centered on technology stocks.

Microsoft and Facebook reported quarterly earnings after the previous day's close that exceeded market expectations in terms of revenue.

Facebook's stock rose about 5.4% that day, while Microsoft's stock increased by around 1%.

By sector, financial stocks fell 2.68%. Technology stocks dropped 0.46%, while communication stocks rose 0.02%.

At the Chicago Board Options Exchange (CBOE), the Volatility Index (VIX) rose 9.35% from the previous trading day to 34.15.

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