[New York Close] Stock Market and Oil Prices Falter Amid Fear

[Image source=EPA Yonhap News]

[Asia Economy New York=Correspondent Baek Jong-min] The US New York stock market has once again faltered amid fears of the Wuhan pneumonia. In the commodities market, prices of crude oil and copper have been falling continuously, reflecting growing concerns about the impact of the Wuhan pneumonia outbreak on the global economy.

On the 24th (US Eastern Time), at the New York Stock Exchange (NYSE), the Dow Jones Industrial Average closed at 28,989.73, down 170.36 points (0.58%) from the previous session; the S&P 500 index fell 30.07 points (0.90%) to 3,295.47; and the Nasdaq index dropped 87.57 points (0.93%) to 9,314.91.

On a weekly basis, the Dow fell 1.22%, the S&P 500 declined 1.03%, and the Nasdaq decreased by 0.79%. The Dow and S&P 500 broke below the 29,000 and 3,300 levels, respectively.

Early in the trading day, the US stock market showed gains due to positive European economic indicators and strong earnings from major companies. However, after the US Centers for Disease Control and Prevention (CDC) announced that a 60-year-old woman living in Chicago was diagnosed with the coronavirus, the cause of Wuhan pneumonia, and that there were suspected cases, the market was shaken significantly. News of confirmed cases in France further increased downward pressure. Travel-related stocks, including United Airlines, which fell 3.5%, showed broad weakness amid concerns over Wuhan pneumonia.

International oil prices also continued to fall for the third consecutive day, unable to escape the 'typhoon' of Wuhan pneumonia. On the New York Mercantile Exchange (NYMEX), March delivery West Texas Intermediate (WTI) crude oil closed at $54.19 per barrel, down 2.5% ($1.40). The weekly decline in WTI reached 7.5%.

Copper prices, considered a barometer of the global economy, also fell continuously, giving up most of the gains made since December last year.

Safe-haven international gold prices steadily rose. On the New York Commodity Exchange, February delivery gold closed at $1,571.90 per ounce, up 0.4% ($6.50) from the previous day.

The economic indicators released that day were positive. The preliminary Purchasing Managers' Index (PMI) for manufacturing in the Eurozone, announced by IHS Markit, recorded 47.8 in January, the highest in nine months. The preliminary US manufacturing PMI (seasonally adjusted) for January was 51.7, down from the previous month's final figure of 52.4. It was the lowest in the past three months and below the market expectation of 52.2. On the other hand, the preliminary services PMI rose from 52.8 in the previous month to 53.2, exceeding the market expectation of 52.8. This was the highest in the past 10 months.

Major companies also posted strong earnings. Intel, which released its earnings after the previous day's market close, rose 8%, and American Express, which announced earnings that day, showed gains of around 2.9%.

Boeing's stock rose 1.7% on news that the US Federal Aviation Administration (FAA) may approve the resumption of 737 Max operations before mid-year.