[New York Close] Strong Performance on Expectations for COVID-19 Treatment

[Image source=Reuters Yonhap News]

[Asia Economy New York=Correspondent Baek Jong-min] The New York stock market showed a nearly 3% rise on expectations of the emergence of a treatment for the novel coronavirus infection (COVID-19).

On the 17th (local time), the Dow Jones Industrial Average closed at 24,242.49, up 704.81 points (2.99%) from the previous day, the S&P 500 index rose 75.01 points (2.68%) to 2,874.56, and the Nasdaq index closed at 8,650.14, up 117.78 points (1.38%).

The weekly gains were 0.9% for the Dow, 1.9% for the S&P 500, and 5% for the Nasdaq. According to CNBC, this is the first time since February that the S&P 500 has recorded two consecutive weeks of weekly gains. The Dow's rise was largely influenced by Boeing, which announced the start of operations at its Seattle factory on the 20th and surged 14%.

The news a day earlier that Gilead's Ebola virus treatment remdesivir showed effectiveness in clinical trials for COVID-19 treatment stimulated overall market investor sentiment. On this day, Gilead's stock price rose 7%.

It is also evaluated that the three-step plan announced by U.S. President Donald Trump for reopening economic activities contributed to stabilizing investor sentiment. As expectations for economic reopening spread, stocks benefiting from remote work and home sheltering such as Amazon, Netflix, and Walmart all declined simultaneously.

The economic indicators released on this day were still sluggish. The Conference Board reported that the U.S. Leading Economic Index for March fell 6.7% from the previous month to 104.2, marking the largest drop since the data began to be compiled.

Goldman Sachs downgraded Apple's investment rating from neutral to sell. Despite Apple starting pre-orders for the iPhone SE at a low price on this day, Goldman Sachs analyzed that iPhone demand would weaken. The target price was also lowered from $250 to $233.

As expectations for economic reopening took effect, gold prices also showed weakness. On the New York Commodity Exchange, the June gold price closed at $1,698.80, down $32.90 (1.9%). The weekly decline rate was 3%.

International oil prices plunged again. On the New York Mercantile Exchange, West Texas Intermediate (WTI) crude oil for May delivery closed at $18.27 per barrel, down 8.1% ($1.60) from the previous day. The WTI decline this week reached 20%.