[Asia Economy New York=Correspondent Baek Jong-min] The U.S. New York stock market has recovered to the level of early March, before the new coronavirus (COVID-19) outbreak gained momentum.
On the 27th (local time), the Dow Jones Industrial Average rose 53.16 points (2.21%) to close at 25,548.27, the S&P 500 index increased by 44.36 points (1.48%) to 3,036.13, and the Nasdaq index climbed 72.14 points (0.77%) to finish at 9,412.36.
Although the day before the Dow and S&P 500 attempted to recover the 25,000 and 3,000 levels respectively but failed near the close, they comfortably succeeded this day. This indicates the market is full of upward momentum.
The Dow Jones recovering the 25,000 level is the first time since March 10. The S&P 500 also regained the 3,000 level for the first time since March 5. The S&P 500 has surged about 38% since its March low. The S&P 500 also surpassed its 200-day moving average on this day, raising expectations for further gains.
Although U.S.-China tensions threatened the market again on this day, they had little impact. U.S. Secretary of State Mike Pompeo reported to Congress that Hong Kong is not enjoying a high degree of autonomy from China. This is seen as reflecting the possibility of the U.S. revoking Hong Kong’s special economic and trade status in the future.
The U.S. Federal Reserve (Fed), through its Beige Book economic report, stated that due to the COVID-19 situation, "economic activity is declining in all regions," and "most are falling sharply."
The Fed added, "Many regions hope that overall economic activity will increase once reopening begins, but the economic outlook remains very uncertain, and most regions are pessimistic about the potential speed of recovery."
Oil prices were significantly affected by U.S.-China tensions. On this day, July delivery West Texas Intermediate (WTI) crude oil closed at $32.81 per barrel, down 4.5% ($1.54) from the previous day. The international benchmark Brent crude for July delivery also fell about 4%, trading around the $34 level.
International gold prices recorded $1,726.80 per ounce, down 0.08% ($1.40) from the previous day.
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