[New York Close] Dow Jones Surges to Highest in 87 Years... Gold Price Sees Largest Increase in 11 Years (Comprehensive)

[Image source=EPA Yonhap News]

[Asia Economy New York=Correspondent Baek Jong-min] The New York stock market recorded a double-digit surge, fueled by expectations of an agreement in Congress on a new coronavirus (COVID-19) relief stimulus bill.

On the 24th (local time), the Dow Jones Industrial Average closed at 27,704.91, up 11.37% (2,122.98 points) from the previous day. Bloomberg reported that this was the largest single-day gain for the Dow since 1933. The Dow successfully returned to the 20,000 level.

The S&P 500 index rose 9.38% (209.93 points) to close at 2,447.33, and the Nasdaq index increased 8.12% (557.18 points) to close at 7,417.86. The S&P 500 also recorded its largest gain in over 11 years since October 2008 during the global financial crisis.

The rise in the Dow was led by stocks expected to benefit from the passage of the economic support package. Aircraft manufacturer Boeing surged 20%, energy company Chevron jumped 22%, and credit card company American Express rose 21%. The S&P 500 energy sector also surged 16%, and bank stocks joined the rally with a 12% increase.

Republicans and Democrats in the U.S. are reportedly close to agreeing on a $2 trillion stimulus bill. This turnaround came just one day after the bill's failure to reach an agreement caused a plunge despite the Federal Reserve's unlimited quantitative easing announcement.

Additionally, the statement by the Group of Seven (G7) finance ministers and central bank governors during a conference call, pledging to take all necessary measures for economic recovery, also contributed to improving investor sentiment.

Alongside the Fed's aggressive measures, other financial markets are stabilizing. Gold prices rose 6.0% ($93.20) to close at $1,660.80 per ounce, marking the largest single-day gain in 11 years. Gold had also surged 5% the previous day.

The dollar value declined for the second consecutive day. The dollar index, which measures the dollar's value against major currencies, fell about 1%.

International oil prices also rose on expectations of increased demand from the stimulus. May delivery West Texas Intermediate (WTI) crude oil closed up 2.8% ($0.65) at $24.01 per barrel.