[Asia Economy New York=Correspondent Baek Jong-min] The U.S. stock market successfully rebounded after escaping last weekend's sharp decline. Oil prices continued to weaken, entering the $40 range during the session, signaling a correction phase.
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On the 3rd (Eastern Time), at the New York Stock Exchange (NYSE), the Dow Jones Industrial Average rose 143.78 points (0.51%) to close at 28,399.81, the S&P 500 index increased by 23.40 points (0.73%) to 3,248.92, and the Nasdaq finished up 122.47 points (1.34%) at 9,273.40. Although the New York stock market ended January on a downtrend, it started February's first trading day on a positive note.
On this day, the market was closely watching the novel coronavirus situation, economic indicators, and the U.S. Democratic Iowa caucus. Despite the Shanghai stock market plunging after reopening from a holiday, it maintained a positive trend amid strong economic data.
The U.S. Institute for Supply Management (ISM) announced that the January U.S. Manufacturing Purchasing Managers' Index (PMI) rose to 50.9 from 47.8 the previous month. This figure exceeded expectations and indicates that manufacturing has shifted from a contraction phase since August last year to an expansion phase.
Political influences cannot be ruled out ahead of the Iowa caucus, the starting point of the U.S. presidential race. Recently, Wall Street has increasingly viewed Senator Bernie Sanders' strength as negative for the stock market. Some analyses suggest that the recent weakness reflects both the novel coronavirus and Sanders' rise.
The day's market highlight was undoubtedly electric vehicle maker Tesla. Tesla's stock price surged 19.9% to reach $780. The price increase was attributed to a securities firm raising Tesla's target price to $808.
The 10-year U.S. Treasury yield rose slightly, somewhat weakening the preference for safe-haven assets. On the New York Mercantile Exchange, April gold delivery fell 0.4% ($5.50) to close at $1,582.40 per ounce.
Oil prices remain unable to escape the impact of the novel coronavirus. On the New York Mercantile Exchange (NYMEX), March delivery West Texas Intermediate (WTI) crude oil fell sharply by 2.8% ($1.45) from the previous trading day to close at $50.11 per barrel.
During the session, prices dropped to the $49 level but managed to hold above $50 after news emerged that the Organization of the Petroleum Exporting Countries (OPEC) is considering production cuts. The Wall Street Journal reported that WTI has fallen 20% compared to early January, entering a correction phase.
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