Mixed Trends in New York Stock Market Amid Emergence of 'Byeonjong Corona'... Tesla Drops 6% on 'Apple Car' Reports

[Asia Economy New York=Correspondent Baek Jong-min] The New York stock market showed mixed trends despite the positive news of the passage of the economic stimulus bill, as concerns over the mutated novel coronavirus infection (COVID-19) spread.

[Image source=AP Yonhap News]

On the 21st (local time), the Dow Jones Industrial Average rose 37.40 points (0.12%) to close at 30,216.45, the S&P 500 index fell 14.49 points (0.39%) to 3,694.92, and the Nasdaq index dropped 13.12 points (0.1%) to 12,742.52.

As the mutated COVID-19 spread in the UK, fear of the virus increased. All three major indices recorded sharp declines at the opening, but the Dow Jones managed to rebound in the afternoon. The S&P 500 and Nasdaq also reduced their losses.

Concerns over the spread of the mutated virus worsened investor sentiment. Travel-related stocks, which had been strong due to the emergence of COVID-19 vaccines, were hit hard. Shares of cruise lines and airlines all turned weak.

Sportswear company Nike closed up 4.9%, buoyed by better-than-expected earnings.

Bank stocks surged sharply after the US Federal Reserve (Fed) allowed the resumption of dividends over the past weekend. JPMorgan Chase rose 3.75%, Goldman Sachs 6.1%, and Citigroup 3.6%. The strength of bank stocks contributed to the Dow Jones’ rebound that day.

Tesla’s stock price plunged 6.5% in its first trading session after being included in the S&P 500 index. On the same day, news that Apple is developing an electric vehicle targeting 2024 and has started developing next-generation batteries also affected Tesla’s stock decline. Apple’s stock rose 1.2%.

Due to concerns over the spread of COVID-19, oil-related stocks such as Chevron and ExxonMobil also showed declines in the 1% range. As worries about demand reduction grew, West Texas Intermediate (WTI) crude oil for delivery in January next year closed down 2.6% ($1.13) at $47.97 per barrel.

With the British pound plummeting and the dollar rising, gold for February delivery closed down 0.3% ($6.10) at $1,882.80 per ounce.

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