[New York Close] Trump Brings Tears and Laughter... 10% Surge

[Image source=Reuters Yonhap News]

[Asia Economy New York=Correspondent Baek Jong-min]The US New York stock market rebounded nearly 10% again on the 13th (local time), just one day after a 10% plunge.

On that day, the Dow Jones Industrial Average rose 1,985.00 points (9.36%) to close at 23,185.62, the S&P 500 index increased by 230.38 points (9.29%) to 2,711.02, and the Nasdaq index climbed 673.07 points (9.35%) to finish at 7,874.88.

The market, which had been rising in early trading, suddenly surged following President Trump's press conference.US CNBC reported that the increase in gains was due to President Trump's mention of expanding COVID-19 testing through the introduction of drive-thru testing. The New York stock market dramatically reversed course after a 10% plunge the previous day influenced by President Trump's State of the Union address.

President Trump's announcement of his intention to purchase strategic oil reserves also helped stabilize investor sentiment. April delivery West Texas Intermediate (WTI) crude oil closed at $31.73 per barrel, up 0.7% ($0.23), but after President Trump's speech, it extended gains to 5-6% in after-hours trading. This triggered a rare rally in the energy sector, with major oil company ExxonMobil's stock rising about 2%.

As the preference for safe-haven assets eased, the yield on the 10-year US Treasury bond rose to 1% following President Trump's press conference. An increase in bond yields means a decline in bond prices. Similarly, gold, another safe-haven asset, closed at $1,516.70 per ounce, down 4.6% ($73.60) from the previous day.