New York Stock Market Rebounds Despite COVID-19 Spread (Comprehensive)

The Boeing 737 Max aircraft is landing after completing a test flight on the 29th (local time). [Image source=AP Yonhap News]

[Asia Economy New York=Correspondent Baek Jong-min] The New York stock market recorded a strong rebound despite concerns over the resurgence of the novel coronavirus infection (COVID-19).

On the 29th (local time), the Dow Jones Industrial Average surged 580.25 points (2.32%) to close at 25,595.80, the S&P 500 index rose 44.19 points (1.47%) to 3,053.24, and the Nasdaq index increased 116.93 points (1.2%) to finish at 9,874.15.

On that day, the major indices started mixed as the number of COVID-19 cases in the U.S. surged again to record highs, but over time they turned to a strong rebound.

Although states such as Texas and Florida, where confirmed cases surged, strengthened lockdown measures by banning bar operations again, and New Jersey postponed the reopening of indoor dining, delaying economic activities, the index declines were limited and instead captured opportunities for gains.

China’s industrial profits in May increased by 6% year-on-year, marking the first growth this year, which was positive, and the Eurozone’s June economic sentiment index rose from 67.5 last month to 75.7.

The U.S. Federal Reserve (Fed) also drove market strength by announcing that it would start purchasing corporate bonds through the 'Primary Market Corporate Credit Facility (PMCCF)' from that day. The Fed plans to directly purchase corporate bonds in the issuance market to provide liquidity directly to companies facing financial difficulties.

After the market closed, Fed Chair Jerome Powell mentioned that despite recent economic data recovery and the resumption of economic activities, there remains significant uncertainty about the economic recovery, but this had no impact on the market.

It was also positive news that test flights for safety certification of Boeing’s 737 Max model began. As Boeing’s stock, a major component of the Dow, soared 14.4%, the Dow showed stronger performance compared to other indices.

The Nasdaq also rose as Apple’s stock showed gains in the 2% range. Facebook’s stock, which had fallen due to major companies’ advertising boycott effects, also rose 2.1%.

August delivery West Texas Intermediate (WTI) crude oil closed at $39.70 per barrel, up 3.1% ($1.21) from the previous trading day. It is evaluated that expectations for Chinese crude oil demand pushed up oil prices. August delivery gold closed at $1,781.20 per ounce, up 0.05% ($0.90) from the previous day.

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