New York Stock Market Faces 'Dark Clouds' Despite Vaccine Hopes Due to Delayed Stimulus (Comprehensive)

[Image source=Reuters Yonhap News]

[Asia Economy New York=Correspondent Baek Jong-min] Despite expectations for a COVID-19 vaccine, major New York stock indices reversed to a decline ahead of the market close after Mitch McConnell, the Republican Senate Majority Leader, mentioned that negotiations on the economic stimulus bill are at a standstill.

On the 11th (local time), the Dow Jones Industrial Average closed down 104.53 points (0.38%) at 27,686.91, the S&P 500 fell 26.78 points (0.80%) to 3,333.69, and the Nasdaq dropped 185.53 points (1.69%) to 10,782.82.

The market showed strength early in the session, buoyed by Russian President Vladimir Putin's announcement that Russia had officially registered the world's first COVID-19 vaccine. There was even anticipation that the S&P 500 might surpass its previous high recorded in February. On vaccine hopes, safe-haven assets such as U.S. Treasury bonds and gold prices fell sharply.

December delivery gold closed at $1,946.30 per ounce, plunging 4.6% ($93.40) from the previous day. Silver also experienced an intraday drop of around 14%.

The situation reversed in the afternoon. This was interpreted as a reaction to Mitch McConnell's comment that negotiations on the stimulus bill have not yet resumed following their breakdown late last week. The collapse of stimulus bill expectations caused investor sentiment to cool rapidly.

Among individual stocks, technology shares notably weakened, with Apple falling nearly 3%.

On the New York Mercantile Exchange (NYMEX), September delivery West Texas Intermediate (WTI) crude oil closed down 0.4% ($0.17) at $41.77 per barrel.

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