[New York Close] Dow Reverses Down Amid Pneumonia Fears

[Asia Economy New York=Correspondent Baek Jong-min] The U.S. stock market closed without fully shaking off concerns over the spread of Wuhan pneumonia.

On the 22nd (Eastern Time), at the New York Stock Exchange (NYSE), the Dow Jones Industrial Average closed at 29,186.27, down 9.77 points (0.03%) from the previous session.

The S&P 500 index closed at 3,321.75, up 0.96 points (0.03%) from the previous session, and the tech-heavy Nasdaq index ended the day at 9,383.77, up 12.96 points (0.14%).

The New York stock market opened higher that day. There was growing expectation that the market would recover from the previous day’s decline caused by fears over the first confirmed case of Wuhan pneumonia in the U.S. However, the Dow Jones reversed to a decline near the close, failing to completely dispel the atmosphere of fear.

Although U.S. President Donald Trump stated that "Wuhan pneumonia is completely under control" and denied the possibility of its spread within the U.S., the number of deaths in China surged to 17. Additionally, late in the session, news of the lockdown of Wuhan city in China emerged, and the World Health Organization (WHO) postponed its decision on whether to declare a global emergency over Wuhan pneumonia by one day, all of which continued to impact the market.

On this day, oil prices were more significantly affected by Wuhan pneumonia than the stock market. This is because if the pneumonia spreads, it is expected to negatively impact the global economy, reducing production and trade, which could lead to a decrease in oil demand.

At the New York Mercantile Exchange (NYMEX), March delivery West Texas Intermediate (WTI) crude oil closed at $56.74 per barrel, down 2.8% ($1.64) from the previous day. At 3:30 p.m., March Brent crude on the London ICE Futures Exchange was trading down 2.21% ($1.43) at $63.16. Oil prices fell further amid concerns over oversupply.

Copper prices, a barometer of the global economy, also continued to decline. On the London Metal Exchange (LME), copper closed down 0.8% at $6,108 per ton, the lowest level in three weeks.

Corporate earnings and economic indicators released that day were favorable. IBM, which reported better-than-expected fourth-quarter results the previous day, rose about 3.4%. Semiconductor company Texas Instruments also announced better-than-expected earnings.

The National Association of Realtors (NAR) announced that existing home sales (seasonally adjusted) in December last year increased by 3.6% from the previous month to 5.54 million units. Experts had forecast a 1.5% increase to 5.43 million units.