New York Stock Market Rises on Stimulus Hopes Despite Employment Deterioration... Nasdaq Up 1%

3 Major Indexes Hit All-Time Highs
Despite Employment and COVID-19 Setbacks, Optimism Over Economic Stimulus Measures

[Asia Economy Reporter Naju-seok] Despite weak employment indicators, the U.S. stock market showed an upward trend and once again reached an all-time high. Expectations for the new government's economic stimulus measures led the rise.

[Image source=AP Yonhap News]

On the 8th (local time) at the New York Stock Exchange (NYSE), the Dow Jones Industrial Average closed at 31,097.97, up 0.18% (56.84 points) from the previous day. The Standard & Poor's (S&P) 500 index rose 0.55% (20.89 points) to 3,824.68, and the tech-heavy Nasdaq index closed up 1.03% (134.50 points) at 13,201.98.

All three major indices continued their streak of record highs.

The objective market conditions were not favorable. Last month, U.S. job numbers fell far short of market expectations. Experts predicted a decrease of 50,000 nonfarm jobs, but the actual job loss reached 140,000. A total of 9.37 million jobs disappeared over the past year.

The direct cause of the employment market downturn, COVID-19, is instead showing fierce strength. On this day, the number of COVID-19 deaths in the U.S. exceeded 4,000. New confirmed cases also surpassed 270,000, showing a steep acceleration in the spread since the end of the year.

Nevertheless, what steadied the market was the economic stimulus plan from the Democratic Party, which swept both the presidency and Congress. President-elect Biden plans to unveil a COVID-19 response stimulus package next week. Since Biden has promised expanded disaster relief payments, the market expects a large-scale economic stimulus plan to be presented.

By stock, Tesla's shares surged 7.8%, continuing their sharp rise.

International oil prices rose influenced by Saudi Arabia's production cut news and other factors. The U.S. West Texas Intermediate (WTI) February delivery futures jumped 2.8% (1.41 dollars) from the previous day to $52.24 per barrel, the highest since February last year.

International gold prices fell. February delivery gold dropped 4.1% (78.20 dollars) from the previous day to $1,835.40 per ounce.

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