[Asia Economy New York=Correspondent Baek Jong-min] Expectations for China's economic stimulus measures have once again driven the U.S. stock market to record highs.
On the 19th (local time) at the New York Stock Exchange (NYSE), the Dow Jones Industrial Average closed at 29,348.03, up 115.84 points (0.40%) from the previous session, the S&P 500 index rose 15.86 points (0.47%) to 3,386.15, and the Nasdaq index ended trading at 9,817.18, up 84.44 points (0.87%). The S&P 500 and Nasdaq reached all-time highs, and the Dow also showed strength, continuing the preference for risk assets.
News that the spread of the novel coronavirus (COVID-19) has slowed and the possibility of economic stimulus from the Chinese government led the market rally on this day.
Chinese state-run news agency Xinhua reported that Chinese authorities will actively support companies' return to normal operations, including logistics support. Expectations also grew for the central bank, the People's Bank of China, to cut the Loan Prime Rate (LPR) on the 20th. The continued slowdown in new COVID-19 cases within China was also a positive factor.
The indicators released on this day confirmed an improvement in the housing market. The U.S. Department of Commerce announced that new housing starts in January fell 3.6% month-over-month to 1,567,000 units, significantly missing the Dow Jones consensus forecast of an 11.7% decline. Housing permits in January rose 9.2% to 1,551,000 units, marking the highest level since March 2007.
The U.S. producer price index for January rose 0.5% month-over-month, far exceeding the market expectation of 0.1%, marking the highest level since October 2018.
Apple's stock, which had said it would be difficult to achieve first-quarter sales targets due to COVID-19 impacts, rebounded 1.5% just one day after a decline. Electric vehicle maker Tesla, which had undergone a correction amid overvaluation concerns, surged 6.8%, re-entering the $900 range.
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International oil prices recorded a sharp rise. On this day at the New York Mercantile Exchange (NYMEX), March delivery West Texas Intermediate (WTI) crude oil closed at $53.29 per barrel, up 2.4% ($1.24) from the previous day.
April delivery gold rose 0.5% ($8.20) to $1,611.80 per ounce compared to the previous day.
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