[Asia Economy New York=Correspondent Baek Jong-min] After the Memorial Day holiday and two months, the New York stock market reopened its offline trading floor, leading to a sharp rise in major indices, but news of the U.S. sanctions policy against China emerging late in the session left the market with doubts.
On the 26th (local time), the Dow Jones Industrial Average surged 529.95 points (2.17%) to close at 24,995.11, the S&P 500 rose 36.32 points (1.23%) to 2,991.77, and the Nasdaq ended up 15.63 points (0.17%) at 9,340.22.
The market started strong from the opening, with the Dow Jones breaking through 25,000 and the S&P 500 surpassing 3,000 consecutively. This was due to the accelerating reopening of economic activities worldwide, including the U.S., positive economic indicators, and the added possibility of COVID-19 vaccine development.
The Wall Street Journal reported signs of the economy gradually regaining momentum, such as a significant increase in the number of travelers passing through U.S. airport security checkpoints compared to last month. The Journal also analyzed that restaurant reservation app bookings and freight truck volumes were on the rise.
U.S. President Donald Trump expressed optimism on his Twitter, satisfied with the stock index gains and stating that the "transition to greatness," including economic normalization, is happening faster than expected.
It was also positive news that U.S. pharmaceutical company Novavax announced the start of its Phase 1 clinical trial of a COVID-19 vaccine on humans the previous day.
The mood changed in the afternoon session due to escalating U.S.-China tensions. White House Press Secretary Kayleigh McEnany said that President Trump told her he was "upset" about China's plan to enact the Hong Kong National Security Law. She added that Trump also warned that Hong Kong’s status as a financial hub could become uncertain.
Following these remarks, reports emerged that the U.S. government is considering sanctions against Chinese officials, companies, and financial institutions in response to the Hong Kong security law, causing the gains in the indices to start narrowing.
International oil prices continued their upward trend, with July delivery West Texas Intermediate (WTI) crude oil closing up 3.3% ($1.10) at $34.35 per barrel. July Brent crude also rose 1%, trading around the $36 level.
June delivery gold closed down 1.7% ($29.90) at $1,705.60 per ounce.
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