New York Stock Market Rises on Fed's Commitment to Economic Stimulus (Comprehensive)

[Image source=Reuters Yonhap News]

[Asia Economy New York=Correspondent Baek Jong-min] The New York stock market confirmed the Federal Reserve's (Fed) commitment to economic stimulus and closed higher.

On the 29th (local time), the Dow Jones Industrial Average rose 160.29 points (0.61%) to close at 26,539.57, the S&P 500 index increased 40.00 points (1.24%) to 3,258.44, and the Nasdaq index gained 140.85 points (1.35%) to finish at 10,542.94.

The Fed held the benchmark interest rate steady after the Federal Open Market Committee (FOMC) meeting that day. Although the Fed did not announce new stimulus measures, it emphasized economic uncertainties and reaffirmed its commitment to economic support.

The Fed stated that economic outlook uncertainties remain, and expressed the view that the future path of the economy will depend on the situation of the novel coronavirus disease (COVID-19). Fed Chair Jerome Powell also noted that the economic recovery is slowing, saying, "We are committed to using all tools for however long it takes," declaring ongoing support intentions.

Concerns about the direction of the U.S. economy are growing, but President Donald Trump and Treasury Secretary Steven Mnuchin admitted that there are still significant disagreements with the Democrats over the stimulus bill, increasing worries. Secretary Mnuchin expressed the view that if no agreement is reached by this Friday, at least a temporary bill addressing urgent issues such as unemployment insurance support should be passed first.

By stock, Kodak, which announced its entry into the pharmaceutical industry the previous day, attracted attention by soaring more than 300%. Kodak's two-day increase rate exceeds 500%.

Gold closed at $1,953.40 per ounce, up 0.5% ($8.80). Despite Fed Chair Jerome Powell dismissing the possibility of inflation, gold continued its nine consecutive trading days of gains. West Texas Intermediate (WTI) crude oil closed at $41.27 per barrel, up 0.6% ($0.23) from the previous day.

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