Bright Smiles on New York Stock Market... Resolution of US-China Uncertainty and Strong Economic Indicators (Comprehensive)

[Image source=Reuters Yonhap News]

[Asia Economy New York=Correspondent Baek Jong-min] The New York stock market showed an upward trend as concerns over the cancellation of the US-China trade agreement disappeared and economic indicators showed positive results. The Nasdaq index once again set an all-time high.

On the 23rd (local time), the Dow Jones Industrial Average rose 131.14 points (0.5%) to close at 26,156.10, the S&P 500 index increased by 13.43 points (0.43%) to 3,131.29, and the Nasdaq closed at 10,131.37, up 74.89 points (0.74%).

The economic indicators released that day were positive. The US manufacturing PMI for June, announced by Markit, rose sharply to 49.6 from the previous month's confirmed figure of 39.8. This is the highest level in the last four months. A PMI above 50 indicates expansion, while below 50 indicates contraction. The services PMI also showed a significant increase to 46.7 from 37.5 in the previous month.

New home sales in May also surged by 16.6% compared to the previous month, dismissing market expectations of a 2.7% increase.

A day earlier, Peter Navarro, Director of Trade and Manufacturing Policy at the White House, stated in an interview with Fox News that the US-China trade agreement had been canceled, but this remark actually brought relief to the market. Navarro himself clarified that his statement was incorrect, and President Donald Trump also mentioned on Twitter that the "trade agreement with China is fully intact," leading to a significant reduction in the anticipated uncertainties related to this issue.

On the same day, Treasury Secretary Steven Mnuchin predicted at a Bloomberg-hosted online seminar that additional stimulus measures could be introduced in July. He emphasized that despite the spread of the novel coronavirus (COVID-19), there would be no new economic shutdowns and strongly asserted that the economy could escape recession within the year. The Washington Post also reported, citing sources, that President Trump had instructed his aides to prepare additional economic stimulus measures.

The day before, Apple, which announced the use of its own CPU by declaring a departure from Intel at the Worldwide Developers Conference (WWDC), led the rise in the New York stock market with its stock price increasing by 2.13% that day.

International oil prices fell for the first time in four trading days. West Texas Intermediate (WTI) crude oil for August delivery closed at $40.37 per barrel, down 0.9% ($0.36) from the previous day.

International gold prices reached their highest level since 2012. Gold for August delivery rose 0.9% ($15.60) to $1,782 per ounce compared to the previous trading day.

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