New York Stock Market Mixed Amid COVID Spread and US-China Conflict Concerns

[Image source=Reuters Yonhap News]

[Asia Economy New York=Correspondent Baek Jong-min] The New York stock market showed mixed trends as concerns over the worsening situation of the novel coronavirus infection (COVID-19) and US-China conflicts were reflected. The stimulus bill agreement seems to be gradually approaching the final stage.

On the 7th (local time), the Dow Jones Industrial Average fell 148.47 points (0.49%) to close at 30,069.79, the S&P 500 index dropped 7.16 points (0.19%) to 3,691.96, and the Nasdaq index rose 55.71 points (0.45%) to close at 12,519.95.

As the number of new COVID-19 cases in the US exceeded 200,000 daily, warnings of economic activity shutdowns continue. New York Governor Andrew Cuomo warned that if the hospitalization rate in New York City does not stabilize after five days, indoor dining at New York City restaurants could be suspended next week. Indoor dining at New York restaurants had been suspended since March but was allowed again starting in September.

In California, where the infection spread is most severe, the lockdown areas under stay-at-home orders are expanding. According to Johns Hopkins University, the number of new COVID-19 cases in California on the 6th reached 28,732.

Positive news was reported regarding the stimulus bill to support economic damage caused by COVID-19. Larry Kudlow, Director of the White House National Economic Council, said in an interview with The Washington Post, "The probability of Congress passing the stimulus bill before the end of the year is improving."

Kudlow expressed optimism about the possibility of a negotiation settlement, saying, "The bipartisan $908 billion stimulus bill has moved the Republican Senate and the White House."

The worsening US-China conflict ahead of the inauguration of the next administration under Joe Biden negatively affected investor sentiment.

On the same day, the US State Department added 14 vice chairpersons of the Standing Committee of the National People's Congress (NPC), China's top legislative body, to the sanctions list in bulk, raising concerns about the expansion of US-China conflicts. This acted as a burden not only on the stock market but also on oil prices.

West Texas Intermediate (WTI) crude oil for January delivery fell 1.1% ($0.50) to close at $45.76 per barrel. Gold for February delivery rose 1.4% ($26) to close at $1,866 per ounce.

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