[New York Close] Revived Stock Market... S&P and Nasdaq Reach All-Time Highs

[Asia Economy New York=Correspondent Baek Jong-min] Among the three major U.S. stock indices, the S&P 500 and Nasdaq have again reached all-time highs. Although the new coronavirus remains powerful, the market seems to be gradually returning to normal.

On the 5th (local time) at the New York Stock Exchange (NYSE), the Dow Jones Industrial Average surged 483.22 points (1.68%) from the previous close to finish at 29,290.85. The S&P 500 index rose 37.10 points (1.13%) to 3,334.69, and the Nasdaq closed up 40.71 points (0.43%) at 9,508.68.

On this day, the U.S. stock market showed strength, supported by the possibility of vaccine development against the new coronavirus and positive news on U.S. private employment.

According to major foreign media, China’s CGTN reported, citing local media, that a research team at Zhejiang University discovered that two drugs are effective against the new coronavirus. Sky News also reported that a research team at Imperial College London made a significant breakthrough that drastically reduces the time required to develop a new coronavirus vaccine, which further fueled buying momentum.

According to the ADP National Employment Report released on this day, private employment increased by 291,000 in January. This was the largest monthly increase since May 2015 and significantly exceeded the market forecast of 150,000. If the U.S. Department of Labor’s January nonfarm payroll data, to be released on the 7th, also shows positive results, an even more favorable impact is expected. News also came that the U.S. trade deficit last year decreased for the first time in six years since 2013.

Attention in the stock market was focused on automobile companies on this day. Ford’s stock plunged 9.5% after forecasting poor results not only for its fourth-quarter net profit last year but also for this year’s outlook.

Electric vehicle maker Tesla, which had seen a rapid rise in its stock price, trimmed its gains after surpassing $900 the previous day and then fell 17% on this day. Analysts say the news that Model 3 supply in China could be affected by the new coronavirus influenced the drop, but some also view it as a correction following a short-term surge.

Oil prices recovered above $50 per barrel, with West Texas Intermediate (WTI) crude rising 2.3% ($1.14) to trade at $50.75 per barrel. North Sea Brent crude also rose 2.78% ($1.50) to $55.46 per barrel.

April delivery gold closed up 0.5% ($7.30) at $1,562.80 per ounce. Meanwhile, the yield on the U.S. 10-year Treasury note, considered a representative safe-haven asset, also rose on this day. An increase in bond yields means a decline in bond prices.