[New York Close] Weekly Gain Rate Declines... Oil Prices Approach $30

[Image source=Reuters Yonhap News]

[Asia Economy New York=Correspondent Baek Jong-min] Despite concerns over the US-China trade war and weak economic indicators, the New York stock market showed strength but ended the week with a decline. International oil prices showed an ultra-strong rally, approaching the $30 level. The hope for economic reopening outweighed the negative factors that have become a thing of the past.

On the 14th (local time), the Dow Jones Industrial Average rose 60.08 points (0.25%) to close at 23,685.42, the S&P 500 index increased by 11.20 points (0.39%) to 2,863.70, and the Nasdaq index closed up 70.84 points (0.79%) at 9,014.56.

The weekly decline rates were 2.65% for the Dow, 2.26% for the S&P 500, and 1.17% for the Nasdaq.

Economic indicators remained negative on this day as well. US consumption and production are in a dire situation. The US Department of Commerce announced that retail sales in April fell 16.4% compared to the previous month, marking the largest drop since the related statistics began to be compiled. Industrial production in April, released by the Federal Reserve (Fed), also plunged 11.2%, the largest monthly decline in the 101-year history of the statistics.

The US Department of Commerce significantly tightened regulations to prevent Chinese company Huawei from receiving semiconductors made with US technology, further escalating the US-China trade conflict. As a result, Apple and Qualcomm stocks showed weakness.

However, expectations for consumer improvement overshadowed these negative factors. The preliminary University of Michigan Consumer Sentiment Index for May rose to 73.7, up from the finalized 71.8 in the previous month, exceeding the market forecast of 65.0.

US President Donald Trump’s statement that "if possible, I hope to have a COVID-19 vaccine by the end of the year, maybe even earlier" also supported the stock price rise.

China’s April industrial production increased by 3.9% year-on-year, better than market expectations, providing additional momentum for gains. This marked the first positive growth in China’s industrial production this year.

West Texas Intermediate (WTI) crude oil rose 6.8%, surpassing the $29 per barrel mark, fueled by expectations of increased oil demand due to expanded industrial production activity in China. WTI, which was at negative levels just a few weeks ago, is now on the verge of entering the $30 range. The weekly increase for June WTI contracts was 19%.

June delivery gold closed at $1,756.30 per ounce, up 0.9% ($15.40) from the previous day.

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