[New York Close] COVID-19 Setback Returns... S&P and Nasdaq Hit Intraday Record Highs

[Asia Economy New York=Correspondent Baek Jong-min] 'COVID-19' has cast a dark cloud over the U.S. stock market again. However, the impact was limited.

On the 13th (local time) at the New York Stock Exchange (NYSE), the Dow Jones Industrial Average closed at 29,423.31, down 128.11 points (0.43%) from the previous session. The S&P 500 index fell 5.51 points (0.16%) to 3,373.94, and the Nasdaq index dropped 13.99 points (0.14%) to 9,711.97.

The market showed weakness due to news of a sharp increase in COVID-19 infections and deaths in China. Chinese authorities reported that confirmed COVID-19 cases increased by 15,152 in one day, and deaths rose by 254, heightening market concerns.

However, as analysis spread that this was a temporary phenomenon due to changes in statistical methods, the major indices on the New York Stock Exchange managed to significantly reduce their early session declines. During the session, the S&P 500 and Nasdaq even reversed to gains and reached intraday highs.

On the same day, Japanese research firm Capital Economics warned that the global economic growth rate could fall into negative territory in the first quarter of this year, increasing market concerns about COVID-19.

The U.S. Department of Labor announced that the number of initial jobless claims last week rose by 2,000 to 205,000, which was below the market forecast of 210,000. The Department also reported that the Consumer Price Index (CPI) for January rose 0.1% month-over-month, falling short of the market expectation of a 0.2% increase. The January CPI rose 2.5% year-over-year, marking the highest level since October 2018.

Electric vehicle maker Tesla announced a surprise $2 billion capital increase, causing significant stock price fluctuations, but ultimately showed strong finishing power by closing up 4%.

Oil and gold prices were strong. At the New York Mercantile Exchange (NYMEX), March delivery West Texas Intermediate (WTI) crude oil closed at $51.42 per barrel, up 0.5% ($0.25). April delivery gold also rose 0.5% ($7.20) from the previous day to $1,578.80 per ounce.