New York Stock Market 'Collapses' on a Single Trump Tweet (Summary)

Sharp Drop Amid Fallout from Suspension of Stimulus Package Negotiations

[Image source=Reuters Yonhap News]

[Asia Economy New York=Correspondent Baek Jong-min] The New York stock market collapsed weakly due to the suspension of negotiations on the economic stimulus bill.

On the 6th (local time), the Dow Jones Industrial Average fell 375.88 points (1.34%) to 27,772.76, the S&P 500 index dropped 47.66 points (1.40%) to 3,360.97, and the Nasdaq index closed down 177.88 points (1.57%) at 11,154.60.

On that day, the market started mixed while watching Federal Reserve (Fed) Chairman Jerome Powell's speech and even showed strength during the session, but in the afternoon, it sharply declined after President Donald Trump announced via Twitter that he had ordered the suspension of negotiations on the economic stimulus bill.

In his speech at the National Association for Business Economics, Chairman Powell emphasized that "The (economic) recovery was faster than expected, but the outlook remains very uncertain," and "there is still a long way to go before the recovery effort is complete." He argued that additional economic stimulus measures must be implemented, but it was of no use against President Trump's stance.

By stock, Apple fell 2.8%, Tesla 2.7%, and Amazon 3.1%. Boeing plunged 6.8% due to poor demand outlook.

November delivery West Texas Intermediate (WTI) crude oil closed up 3.7% ($1.45) at $40.67 per barrel. Despite the news of the suspension of the economic stimulus bill negotiations, oil prices showed strength amid reports of a hurricane on the rise.

December delivery gold closed down 0.6% ($11.30) at $1,908.80 per ounce.

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