[New York Close] Dow Jones Rises 0.36% Thanks to US Employment Situation Exceeding Expectations...

Nasdaq Hits All-Time High
US Unemployment Rate Improves to 11.1%
Concerns Over COVID-19 Spread and US-China Relations Remain

[Asia Economy Reporter Naju-seok] Despite concerns over the resurgence of COVID-19, the U.S. stock market rose due to improvements in employment indicators.

On the 2nd (local time) at the New York Stock Exchange (NYSE), the Dow Jones Industrial Average closed at 25,827.36, up 0.36% (92.39 points) from the previous trading day. The Standard & Poor's (S&P) 500 index also rose 0.45% (14.15 points) to 3,130.01. The Nasdaq index, which set a new all-time high, closed the day up 0.52% (53 points) at 12,207.63.

The market improvement was largely driven by signs of recovery in the U.S. employment market, which had been depressed due to COVID-19. Experts had expected an increase of 2.9 million jobs last week, but the actual increase was 4.8 million jobs. The unemployment rate last month was 11.1%, a significant improvement from May's 13.3%. This was also much better than experts' expected unemployment rate of 12.4%.

Christian Sherman, an economist at DWS, said, "The increase exceeded market expectations," adding, "What we confirmed in May and June showed a blueprint for a rapid economic recovery."

However, concerns remain as COVID-19 has recently shown a rapid spread. The number of weekly unemployment insurance claims, which reflects the latest employment situation, increased by 1,427,000 last week. This exceeded the market expectation of 1,380,000. The number of people continuously claiming unemployment benefits also rose by 59,000 to 19.29 million.

The increase in COVID-19 cases is also worrisome. For example, in Florida, U.S., new confirmed cases reached 10,000 in a single day, showing a rapid rise. On the 1st, new confirmed cases in the U.S. totaled 50,000, the highest ever recorded, which is also notable.

Additionally, U.S.-China relations remain a concern. The U.S. Senate passed a bill imposing sanctions on Chinese officials related to the implementation of the Hong Kong National Security Law.

There was also news that the U.S. trade deficit in May increased by 9.7% from the previous month to $54.6 billion.

International oil prices rose on the back of improved employment data. The August contract for West Texas Intermediate (WTI) crude oil closed at $40.65 per barrel, up 2.1% (0.83 dollars). Gold prices also increased. The August gold contract closed at $1,780, up 0.6% (10.1 dollars) from the previous trading day.

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