[Asia Economy New York=Correspondent Baek Jong-min] Although the New York stock market showed mixed trends, expectations grew for a slowdown in the spread of the novel coronavirus, leading the S&P 500 index and the Nasdaq index to once again reach record highs.
On the 11th (local time) at the New York Stock Exchange (NYSE), the Dow Jones Industrial Average closed at 29,276.34, down 0.48 points (0.00%) from the previous session, the S&P 500 index rose 5.66 points (0.17%) to 3,357.75, and the Nasdaq index increased by 10.55 points (0.11%) to 9,638.94. Although the Dow Jones index failed to maintain its intraday record high, its decline was limited.
On this day, the main momentum for the New York stock market was the analysis that the spread of the novel coronavirus is on a downward trend and the testimony of Federal Reserve (Fed) Chairman Jerome Powell before the House of Representatives.
Although the death toll from the novel coronavirus in China exceeded 1,000 and the cumulative number of confirmed cases reached 42,638, Johns Hopkins University in the United States analyzed that the number of new confirmed cases dropped to the lowest level since the end of January, easing market concerns.
There was also speculation that the Fed might cut interest rates considering the impact of the novel coronavirus. In a written response released before his testimony to the House, Chairman Powell mentioned that the Fed is closely monitoring the impact of the novel coronavirus on the global economy, and during the Q&A session with lawmakers, he said, "An impact on the U.S. economy is also expected."
Chairman Powell cautioned against premature assumptions about interest rate cuts. He expressed satisfaction with the current interest rates and said, "It is too early to assess whether the novel coronavirus will change the evaluation related to interest rates."
Nevertheless, market participants interpreted Chairman Powell's remarks as leaning more toward a rate cut rather than a rate hike. However, although the major indices showed strong gains early in the session, most of the gains were given up as Powell's testimony progressed.
By individual stocks, sportswear company Under Armour warned of a sales decline due to the impact of the novel coronavirus, causing its stock price to plunge 19%.
International oil prices rose. West Texas Intermediate (WTI) crude oil closed at $49.94 per barrel, up 0.8% ($0.37). Brent crude also traded up 1.24% ($0.66) at $53.93. April delivery gold closed down 0.6% ($9.40) at $1,570.1 per ounce.
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