[New York Close] Dow Jones Index Rises Two Consecutive Days... Limited Gains Disappoint

[Asia Economy New York=Correspondent Baek Jong-min] The Dow Jones Industrial Average succeeded in rising for two consecutive days in the New York stock market. It is the first time since February 6 that the Dow has risen for two consecutive days based on the closing price. However, the market is still focused solely on the $2 trillion stimulus package and appears to be cautious.

[Image source=Reuters Yonhap News]

On the 25th (local time) at the New York Stock Exchange (NYSE), the Dow rose 495.64 points (2.39%) to close at 21,200.55, the S&P 500 index rose 28.23 points (1.15%) to 2,475.56, while the Nasdaq index fell 33.56 points (0.45%) to close at 7,384.30.

The market closely watched the large-scale $2 trillion stimulus package announced before the opening by the U.S. government and Congress. It is reported to include measures such as bailout financing for large corporations in crisis, support for small and medium-sized enterprises, cash payments to individuals, medical support, and enhanced unemployment relief.

However, the expected congressional vote on the stimulus package was delayed in the afternoon, causing the New York stock market to give up a significant portion of its gains near the close, showing signs of instability.

When some Republican lawmakers, including Lindsey Graham, opposed strengthening unemployment insurance, Senator Bernie Sanders warned that if they do not withdraw their opposition, he would delay the vote on the stimulus package.

Ben Bernanke, former chairman of the Federal Reserve (Fed) who led the escape from the 2008 global financial crisis, described COVID-19 as "closer to a natural disaster" and said the likelihood of it leading to a Great Depression is low. He predicted that the economy would rapidly decline due to the COVID-19 situation but would also rebound sharply. He supported the current Fed Chairman Jerome Powell’s proactive response to COVID-19, which goes beyond the measures Bernanke took during the financial crisis.

On this day, oil prices rose as the news of the stimulus package raised expectations for increased demand. West Texas Intermediate (WTI) crude oil for May delivery closed at $24.49 per barrel, up 2.0% ($0.48).

Gold for April delivery closed at $1,663.40 per ounce, down 1.7% ($27.40) from the previous day, marking a decline after five consecutive days of gains.