[New York Close] Consecutive Rebounds... Nasdaq Hits All-Time High

[Asia Economy New York=Correspondent Baek Jong-min] The US New York stock market showed a sharp rise, significantly easing concerns about the novel coronavirus. The Nasdaq index hit an all-time high amid Tesla's surge.

On the 4th (local time) at the New York Stock Exchange (NYSE), the Dow Jones Industrial Average rose 407.82 points (1.44%) from the previous day to close at 28,807.63, the S&P 500 index increased by 48.67 points (1.50%) to 3,297.59, and the Nasdaq index surged 194.57 points (2.10%) to close at 9,467.97.

The rise in the New York stock market on this day is interpreted as reflecting expectations that the People's Bank of China will announce additional economic stimulus measures following its announcement of large-scale liquidity supply. CNBC reported that the People's Bank of China is preparing to lower the Loan Prime Rate (LPR) and the Reserve Requirement Ratio (RRR).

Economic indicators were also favorable. US factory orders in December last year increased by 1.8% compared to the previous month, marking the largest increase since August 2018. This was a better-than-expected performance by the market.

Electric vehicle manufacturer Tesla led the Nasdaq's rise. Tesla surged 20% intraday following a 19.89% increase the previous day, surpassing $900, but trimmed gains to close up 13.73%. Tesla's stock price has doubled this year, leading to discussions of a 'bubble theory' in the market.

Alphabet, Google's parent company, saw its stock fall 2.5% after its earnings report released after the previous day's close was deemed disappointing.

As the stock market rose, safe-haven asset prices fell. The US 10-year Treasury yield reached 1.603%, moving away from the 1.5% range. A rise in Treasury yields means a decline in bond prices. Gold prices also fell 1.7% ($26.90) to $1,555.50 per ounce on the New York Mercantile Exchange, marking the most significant drop since the outbreak of the novel coronavirus.

Oil prices have yet to find a reversal opportunity. West Texas Intermediate (WTI) crude oil closed down 1.0% ($0.50) at $49.61 per barrel, breaking below the $50 level.