[New York Close] Nasdaq Rebounds... Dow Hesitates

The stock price of the car-sharing company Lyft rose by 21% on the 7th.
[Image source=Reuters Yonhap News]

[Asia Economy New York=Correspondent Baek Jong-min] The New York stock market continues to show strength centered on the Nasdaq. In contrast, the Dow Jones Industrial Average, which focuses on traditional smokestack industries, appears insufficient to keep up with the Nasdaq.

On the 7th (local time) at the New York Stock Exchange (NYSE), the Dow Jones 30 Industrial Average closed at 23,875.89, up 211.25 points (0.89%) from the previous session, the S&P 500 index rose 32.77 points (1.15%) to 2,881.19, and the Nasdaq finished trading at 8,979.66, up 125.27 points (1.41%).

With this rise, the Nasdaq recorded an upward trend on an annual basis this year. The Nasdaq's strength is understood to be due to the expected benefits for information technology (IT) related companies rather than existing industrial groups amid the COVID-19 pandemic. Nasdaq leading stocks such as Amazon, Facebook, and Microsoft have consecutively posted better-than-expected earnings.

On this day as well, ride-sharing companies Lyft and Uber recorded significant rebounds, and stocks in the Nasdaq market clearly showed stronger performance compared to Dow Jones components. Gilead Sciences, the manufacturer of Remdesivir, which gained attention as a COVID-19 treatment, is also part of the Nasdaq.

The Nasdaq's strength stands in stark contrast to the Dow Jones, which has fallen about 16% compared to the beginning of the year, focusing on large blue-chip stocks.

News that China's exports were much better than expected and a decrease in U.S. unemployment positively influenced the market. China's April exports increased by 3.5% in dollar terms compared to the same period last year, fueling expectations for economic recovery.

The announcement before the market opened that last week's initial jobless claims decreased by 677,000 from the previous week to 3,169,000 also added reassurance. Although 33.5 million people have become unemployed over the past seven weeks, new unemployment claims have decreased to about half of the peak.

International oil prices showed weakness and fell for the second consecutive day. On this day at the New York Mercantile Exchange, the June West Texas Intermediate (WTI) crude oil price closed at $23.55 per barrel, down $0.44 (1.8%). Early in the session, prices rose more than 10%, raising hopes for further gains, but reports that the U.S. is reducing military forces such as Patriot missiles in Saudi Arabia led to a reversal into a downward trend.

At the New York Commodity Exchange, June delivery gold and silver showed strength, closing at $1,725.80 per ounce, up 2.2% ($37.30).

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