[New York Close] Expectations Rise for Slowing COVID-19 Spread... Dow Soars 7.73% at Close

[Image source=EPA Yonhap News]

[Asia Economy Reporter Kwon Jae-hee] Major indices on the New York Stock Exchange surged on expectations of a slowdown in the spread of the novel coronavirus infection (COVID-19).

On the 6th (Eastern Time), the Dow Jones Industrial Average on the New York Stock Exchange (NYSE) closed at 22,679.99, soaring 1,627.46 points (7.73%) compared to the previous session.

The Standard & Poor's (S&P) 500 index rose 175.03 points (7.035%) to 2,663.68, and the Nasdaq also surged 540.16 points (7.33%) to close at 7,913.24.

It is analyzed that the expectation of a slowdown in the spread of COVID-19 in Europe and the United States stimulated investor sentiment.

In particular, the number of new deaths in New York decreased for the first time the previous day, prompting U.S. President Donald Trump to say, "This is a good sign," and "We are beginning to see the light at the end of the tunnel."

In Europe, countries heavily affected by COVID-19 such as Italy and Spain also saw a decline in new deaths, raising expectations.

International oil prices showed significant volatility throughout the day amid hopes for a production cut agreement between Saudi Arabia and Russia.

West Texas Intermediate (WTI) crude oil initially plunged about 8% after the emergency meeting of the Organization of the Petroleum Exporting Countries (OPEC) Plus, scheduled for the 6th, was postponed, but the decline quickly narrowed due to hopes for a production cut agreement.

However, uncertainty remains regarding whether the United States will participate in the production cuts.

On this day, technology stocks led the market with an 8.78% surge. Financial stocks also rose 7.46%.

The Chicago Board Options Exchange (CBOE) Volatility Index (VIX) fell 3.3% from the previous trading day to 45.24.