New York Stock Market Mixed... Gold Prices Rise as Dollar Falls

[Image source=Reuters Yonhap News]

[Asia Economy New York=Correspondent Baek Jong-min] The New York stock market closed mixed. Despite worsening employment indicators, expectations for an agreement on the economic stimulus bill supported the market. The dollar value fell again, driving up gold prices.

On the 2nd (local time), the Dow Jones Industrial Average rose 59.87 points (0.20%) to close at 29,883.79, the S&P 500 index increased 6.56 points (0.18%) to 3,669.01, and the Nasdaq index fell 5.74 points (0.05%) to 12,349.37. The S&P 500 set a new all-time high again on the day.

On this day, the New York stock market was marked by a coexistence of caution over worsening employment data and hope for the passage of the economic stimulus bill.

The employment data released that day forecast a deterioration in the November employment situation. According to the ADP National Employment Report, private sector employment increased by only 307,000 in November, falling short of the market forecast of 475,000 compiled by Dow Jones.

Following the recent rise in new unemployment claims, the labor department's November employment data to be released on the 4th was also evaluated by the market as a red flag.

Hope for the economic stimulus bill continued. President-elect Joe Biden urged Congress to pass the economic stimulus bill again on this day, following the previous day.

House Speaker Nancy Pelosi and Senate Majority Leader Chuck Schumer issued a joint statement urging Republicans to pass the $900 billion stimulus bill proposed by bipartisan lawmakers.

Federal Reserve Chairman Jerome Powell stated in testimony to the House that the bond purchase program would not be tapered early. Chairman Powell also did not comment on whether the Fed would expand bond purchases. The Fed is expected to hold an Open Market Committee (FOMC) meeting on the 15th-16th and provide revisions or guidelines regarding the bond purchase program.

The news that the UK government approved the emergency use of Pfizer-BioNTech's vaccine did not have a significant impact on the market.

Customer Relationship Management (CRM) solution provider Salesforce saw its stock plunge 8.5% following the announcement of its acquisition of enterprise messenger Slack for about $27.7 billion. Slack's stock also fell 2.5%.

West Texas Intermediate (WTI) crude oil for January delivery rose 1.6% ($0.73) to close at $45.28 per barrel. Gold for February delivery closed at $1,830.20 per ounce, up 0.6% ($11.30).

The rise in gold prices is interpreted as being influenced by the sharp decline in the dollar index that day. The dollar index fell below the 91 level, recording 90.983 during the session.

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