[New York Close] Dow Jones Index Up 20% in 3 Days... Entering a Bull Market (Comprehensive)

[Image source=AP Yonhap News]

[Asia Economy New York=Correspondent Baek Jong-min] After experiencing a major crash last week, the U.S. stock market has now entered a bull market, achieving a 180% turnaround.

On the 26th (local time) in the New York stock market, the Dow Jones Industrial Average surged 1,351.62 points (6.38%) to close at 22,552.17, the S&P 500 rose 154.51 points (6.24%) to 2,630.07, and the Nasdaq increased 413.24 points (5.60%) to 7,797.54.

The Dow and S&P 500 both recorded gains for three consecutive days. Since the COVID-19 outbreak spread in February, this is the first time the Dow has risen for three straight days. With the rise reaching 20%, The Wall Street Journal evaluated that the Dow has emerged from a bear market. In the U.S. stock market, a 20% rise from the bottom is considered entry into a bull market. Earlier this month, the Dow had fallen 20% from its February peak, ending the bull market that had continued since 2009.

U.S. CNBC also reported that the Dow recorded its largest three-day gain since 1931.

On this day, despite concerns spreading that the 'unemployment crisis' had become a reality as new unemployment claims reached 3.28 million before the market opened, the market continued its unstoppable rise. Last week's unemployment claims were the highest ever recorded. The previous record was 695,000 claims during the second oil shock in 1982. The consolation was that the number was lower than the expected maximum of 4 million claims.

Despite the negative factor of expanding unemployment, the market surged due to expectations that the $2.2 trillion economic stimulus package, which passed the Senate the day before, would pass the House this week and be signed by President Donald Trump.

As investor sentiment stabilized, the dollar value declined. The Dollar Index, which shows the dollar's value against major currencies, fell below the baseline of 100, continuing its weakness. Amid the dollar's decline, gold closed at $1,651.20 per ounce, up 1.1% ($17.80) from the previous day.

Oil prices plunged again due to negative factors. May delivery West Texas Intermediate (WTI) crude oil closed down 7.7% ($1.89) at $22.60 per barrel.

It is evaluated that the absence of strategic petroleum reserve purchase costs in the U.S. economic stimulus bill influenced this. The U.S.-driven demand that would have supported oil prices disappeared.