New York Stock Market Weakens Amid Growing US-China Tensions... Oil Prices Strengthen (Comprehensive)

[Image source=Reuters Yonhap News]

[Asia Economy New York=Correspondent Baek Jong-min] The New York stock market closed lower despite a decrease in new unemployment claims due to the novel coronavirus infection (COVID-19), amid concerns over escalating tensions between the United States and China.

On the 21st (local time) at the New York Stock Exchange (NYSE), the Dow Jones Industrial Average fell 101.78 points (0.41%) to close at 24,474.12,

the S&P 500 index dropped 23.1 points (0.78%) to 2,948.51, and the Nasdaq index declined 90.90 points (0.97%) to close at 9,284.88.

The market was shaken by US-China tensions that day. The day before, the conflict escalated due to US President Donald Trump's 'crazy' remarks, approval of torpedo sales to Taiwan, and the Senate's passage of a bill regulating Chinese companies listed in the US. On this day, the situation intensified further with negative news from China.

When China announced its plan to directly enact the 'Hong Kong National Security Law' instead of the Hong Kong legislature, the US immediately reacted strongly. The State Department issued a warning, and President Trump said he was not fully aware of the matter yet but stated, "If that happens, we will handle that issue very strongly."

The China containment policy is receiving bipartisan support not only from the US administration but also from the US Congress. It has been reported that the US Senate is pushing a bill to sanction those involved if the Hong Kong National Security Law is implemented.

On the same day, the number of unemployment insurance claims last week was 2,438,000, down 249,000 from the previous week. Although about 38.6 million Americans have applied for unemployment benefits over the past nine weeks, the number of new applicants is gradually decreasing.

International oil prices continued to rise. West Texas Intermediate (WTI) crude oil for July delivery closed at $33.92 per barrel, up 1.28% ($0.43) from the previous day. This is the highest level since March. WTI had plunged to negative levels just a month ago but has been rising daily due to production cuts by oil-producing countries and expectations for the resumption of US economic activities. Brent crude oil from the North Sea also traded up 0.78% ($0.28) at $36.03 per barrel.

Gold for June delivery fell 1.7% ($30.20) to $1,721.90 per ounce compared to the previous day.

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