NY Stock Market Soars Again on Strong Employment and Effective Oral COVID-19 Treatment

Decline in Government Bond Yields Despite Tapering Announcement

[Image source=Reuters Yonhap News]

[Asia Economy New York=Correspondent Baek Jong-min] Strong employment data and the emergence of an oral COVID-19 treatment once again drove the New York stock market to record highs.

On the 5th (local time), the Dow Jones Industrial Average rose 203.72 points (0.56%) to close at 36,327.95, the S&P 500 index increased by 17.47 points (0.37%) to 4,697.53, and the Nasdaq index gained 31.28 points (0.20%) to finish at 15,971.59.

The strong October employment report released before the market opened and the introduction of Pfizer's oral COVID-19 treatment stimulated investor sentiment.

In October, U.S. employment increased by 531,000, significantly exceeding the market expectation of 450,000.

The U.S. 10-year Treasury yield fell to 1.451% after the employment data release, supporting gains in technology stocks. Although Treasury yields had surged close to 1.7% amid concerns over the Fed's tapering of asset purchases, they plummeted following the tapering announcement. The decline in Treasury yields indicates a rise in bond prices.

The stock price of Peloton, a fitness equipment company that had surged benefiting from COVID-19, dropped more than 35%. This was due to a larger-than-expected loss announced after the previous day's market close and a downward revision of its annual earnings forecast.

Travel-related stocks such as Expedia rose more than 15% following earnings that exceeded expectations. With a noticeable increase in travelers, the stock prices of United Airlines and American Airlines also rose more than 7% and 5%, respectively. Cruise companies Carnival, Royal Caribbean, and Norwegian Cruise Line all saw their stock prices increase by more than 7%.

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