New York Stock Market Hits Another Record High... Tesla Up 5%

Expectations for Economic Stimulus Bill Boosted by Fed Support
Dollar Value Also Shows Notable Decline

[Asia Economy New York=Correspondent Baek Jong-min] Worsening employment conditions did not stop the rise of the New York stock market. The Federal Reserve's (Fed) stance announced the day before also drove the stock market higher. Tesla surged ahead of its inclusion in the S&P 500 index.

[Image source=AP Yonhap News]

On the 17th (local time) at the New York Stock Exchange (NYSE), the Dow Jones Industrial Average rose 148.83 points (0.49%) to close at 30,303.37, the S&P 500 index increased by 21.31 points (0.58%) to 3,722.48, and the Nasdaq index gained 106.56 points (0.84%) to finish at 12,764.75.

Although the employment data released that day confirmed weakness again, the three major indices relentlessly set new all-time closing highs. The rally did not stop despite delays in the announcement of the much-anticipated economic stimulus bill agreement.

Negotiations on the stimulus bill are expected to continue through the weekend. Because of this, the U.S. Congress is also showing moves to prepare a one- or two-day budget extension to extend the federal government’s temporary budget, which expires on the 18th.

The day before, Fed Chair Jerome Powell hinted at the possibility of increasing bond purchases, which is interpreted as having stimulated investor sentiment.

The employment data released that day was weak. The U.S. Department of Labor announced that the number of initial jobless claims last week increased by 23,000 from the previous week to 885,000. The number of new unemployed increased for two consecutive weeks, reaching the highest level since early September. This was also higher than the market expectation of 808,000.

Tesla Surges Ahead of S&P 500 Index Inclusion

One day before the last trading day prior to its inclusion in the S&P 500 index, electric vehicle maker Tesla’s stock price surged by 5.32%.

Tesla will be included in the S&P 500 index on the 21st based on the closing price on the 18th. Accordingly, funds tracking the S&P 500 index are expected to engage in large-scale trading.

S&P Global, which decides on index inclusion, considered including Tesla in the index in two phases due to its size, but ultimately decided to complete the inclusion in one day.

The dollar index fell to its lowest level since April 2018, boosting gold prices. Gold for February delivery next year closed up 1.7% ($31.30) at $1,890.40 per ounce. During the session, gold prices even entered the $1,900 range.

West Texas Intermediate (WTI) crude oil for January delivery next year closed up 1.1% ($0.54) at $48.36 per barrel.

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