[New York Close] Dow Ends Up 1.2% on Hopes for US Stimulus Deal

S&P 500 Closes Up 0.83% · Nasdaq Up 0.74%

[Image source=AP Yonhap News]

[Asia Economy Reporter Kwon Jae-hee] Major indices on the New York Stock Exchange closed higher across the board amid expectations of a new U.S. stimulus package agreement.

On the 30th (local time) at the New York Stock Exchange (NYSE), the Dow Jones Industrial Average closed at 27,781.70, up 1.2% (329.04 points) from the previous session.

The Standard & Poor's (S&P) 500 index rose 0.83% (27.53 points) to 3,363.00, and the Nasdaq index closed at 11,167.51, up 0.74% (82.26 points).

Market gains were driven by factors including U.S. stimulus negotiations, key economic indicators, and news related to COVID-19 vaccines.

U.S. Treasury Secretary Steven Mnuchin expressed optimism about reaching a deal with the Democrats on the stimulus package, boosting investor sentiment.

On hopes that a stimulus agreement could be reached, the Dow briefly surged more than 570 points during the session compared to the previous day.

Speaker Pelosi also said, "We found additional areas that need to be clarified," adding, "Our talks will continue."

Strong U.S. economic data also provided support to the market.

According to the ADP National Employment Report, private sector employment increased by 749,000 in September, exceeding the Wall Street Journal's forecast of a 600,000 increase.

Additionally, the National Association of Realtors (NAR) announced that the pending home sales index for August rose 8.8% from the previous month to 132.8, far surpassing market expectations and reaching an all-time high.

The final GDP growth rate for the U.S. second quarter was -31.4%. Although it was the worst on record, it was better than the previously announced preliminary figure of a 31.7% decline.

According to the Institute for Supply Management (ISM) Chicago, the Chicago Purchasing Managers' Index (PMI) for September surged to 62.4 from 51.2 in the previous month, exceeding market expectations.

Mixed news emerged regarding COVID-19 vaccines and treatments.

The CEO of U.S. pharmaceutical company Moderna said that the COVID-19 vaccine would not be approved before the presidential election.

On the other hand, research results were released showing that Moderna's COVID-19 vaccine demonstrated effective immune responses and safety in clinical trials targeting elderly individuals.

Also, U.S. biotechnology company Regeneron announced that its monoclonal antibody treatment (REGN-COV2) for COVID-19 showed symptom improvement and reduced viral load in clinical trials.

Meanwhile, concerns about U.S.-China tensions were raised as news emerged that China is considering an antitrust investigation into Google.

On the day, financial stocks rose 1.24%, while technology stocks increased 0.91%.

At the Chicago Board Options Exchange (CBOE), the Volatility Index (VIX) rose 0.38% to 26.37 compared to the previous trading day.

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