Dow Jones Index Soars 2%... 'Floating High' on Economic Recovery Hopes (Comprehensive)

[Image source=Reuters Yonhap News]

[Asia Economy New York=Correspondent Baek Jong-min] The New York stock market surged on expectations that the economic downturn caused by the novel coronavirus disease (COVID-19) has bottomed out.

On the 3rd (local time) at the New York Stock Exchange (NYSE), the Dow Jones Industrial Average rose sharply by 527.24 points (2.05%) to close at 26,269.89, the S&P 500 index increased by 42.05 points (1.36%) to 3,122.87, and the Nasdaq closed up 74.54 points (0.78%) at 9,682.91.

On this day, the Dow's rise was more pronounced compared to the relatively limited gains of the S&P 500 and Nasdaq. With this increase, the Dow reclaimed the 26,000 level.

The rise was mainly driven by strong key indicators such as May employment data. According to the ADP National Employment Report, private sector employment in May decreased by 2.76 million, a significant improvement compared to Dow Jones' forecast of an 8.75 million decline. The US May Services Purchasing Managers' Index (PMI) also rose from 41.8 in April to 45.4, further boosting expectations for economic recovery.

Peaceful conclusions to most protests nationwide the day before also reassured the market.

July delivery West Texas Intermediate (WTI) crude oil closed up 1.3% ($0.48) at $37.29 per barrel. The August Brent crude is also showing an increase of around 1% per barrel.

August delivery gold closed down 1.7% ($29.20) from the previous day at $1,704.80 per ounce.

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