[New York Close] 3% Rise Despite Extension of Social Distancing Measures

[Asia Economy New York=Correspondent Baek Jong-min] The New York stock market succeeded in rising despite the extension of social distancing guidelines to prevent the spread of the novel coronavirus infection (COVID-19).

[Image source=AP Yonhap News]

On the 30th (local time) at the New York Stock Exchange (NYSE), the Dow Jones Industrial Average rose 690.70 points (3.19%) from the previous week to close at 22,327.48, the S&P 500 index increased 85.18 points (3.35%) from the previous close to 2,626.65, and the Nasdaq index closed at 7,774.15, up 271.77 points (3.62%).

On this day, the New York stock market once again expanded its gains toward the end of the session, successfully achieving a relatively large increase. Although U.S. President Donald Trump announced the day before that the 'social distancing' to curb the spread of COVID-19 would be extended until the end of April, confirming a delay in the resumption of economic activities, investors bet on the bulls.

This is interpreted as being due to the calming of the fear that had prevailed in the market. It is understood that the easing of liquidity crunch was influenced by governments and central banks around the world consecutively introducing large-scale stimulus measures.

U.S. Treasury Secretary Steven Mnuchin also expressed the view that additional stimulus measures are possible if necessary. The Wall Street Journal reported that following the $2.2 trillion third support package centered on Congress, a fourth economic support plan is likely to be prepared. House Speaker Nancy Pelosi even suggested that the fourth package would include support for social overhead capital, fueling expectations for additional measures.

Economic indicators remain negative. The Dallas Federal Reserve Bank announced that its regional manufacturing activity index for March plunged to minus (-) 70 from 1.2 the previous month. This is the lowest level since 2004.

The St. Louis Fed released a report stating that the U.S. unemployment rate could reach 32%. This is even higher than the 30% unemployment rate suggested a week earlier by James Bullard, President of the St. Louis Fed.

Although the stock market rose, the dollar value returned to an upward trend on the day, and the U.S. 10-year Treasury yield also showed a worrying rise.

Oil prices fell again on the day, entering the $10 range during the session. At the New York Mercantile Exchange, West Texas Intermediate (WTI) crude oil closed at $20.09 per barrel, plunging 6.6% ($1.42). North Sea Brent crude oil traded at $22.64, plummeting 9.19% ($2.29).

Gold closed at $1,643.20 per ounce, down 0.7% ($10.90).