[Asia Economy New York=Correspondent Baek Jong-min] Since mid-January, concerns over COVID-19 that had been pressuring the market have eased, bringing a tailwind to the New York stock market.
On the 12th (local time) at the New York Stock Exchange (NYSE), the Dow Jones Industrial Average rose 275.08 points (0.94%) to close at 29,551.42, the S&P 500 index increased by 21.70 points (0.65%) to 3,379.45, and the Nasdaq rose 87.02 points (0.9%) to close at 9,725.96.
On this day, all three major New York stock indices reached record highs as investment sentiment toward risk assets revived amid analyses that the spread of COVID-19 was slowing down.
Although the death toll in China due to COVID-19 exceeded 1,100 and the cumulative confirmed cases surpassed 44,000, news that the number of new confirmed cases dropped to the low 2,000s spurred buying momentum.
COVID-19 related stocks such as Wynn Resorts, Sands Resorts, and American Airlines joined the surge in prices.
Shares of ride-sharing company Lyft plunged more than 10%. This was influenced by forecasts suggesting it would be difficult to turn a profit by the end of 2021, which weighed on the stock price. Boeing rose 0.4%, buoyed by Credit Suisse raising its target price from $321 to $367.
International oil prices strengthened amid expectations of possible production cuts by the Organization of the Petroleum Exporting Countries (OPEC). West Texas Intermediate (WTI) crude oil closed up 2.5% ($1.23) at $51.17 per barrel, recovering above the $50 level. Gold closed at $1,571.60 per ounce, up 0.1% ($1.50).
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