[Asia Economy New York=Correspondent Baek Jong-min] The US New York stock market closed with a sharp rise. The Nasdaq index recorded an intraday high, and the employment boom effect stirred the market. The Dow Jones Industrial Average and the S&P 500 index are also on the verge of recovering to the levels seen at the beginning of the year before the outbreak of the novel coronavirus disease (COVID-19). Amid a preference for risk assets, prices of safe assets such as gold and US Treasury bonds fell sharply.
On the 5th (local time), the Dow Jones Industrial Average rose 829.16 points (3.15%) to close at 27,110.98, the S&P 500 index rose 81.58 points (2.62%) to 3,193.93, and the Nasdaq index closed up 198.27 points (2.06%) at 9,814.08.
The Nasdaq also recorded an all-time high during the session. The Dow showed strong gains, rising more than 1,000 points intraday, raising expectations for a positive turnaround compared to the beginning of the year. Compared to the beginning of the year, the Dow has a decline rate of 5.0%. The decline rate of the S&P 500 index has narrowed to 1.1%.
The market fluctuations on this day were influenced by strong employment data. According to the Department of Labor, nonfarm payrolls increased by 2.5 million in May, and the unemployment rate fell from 14.7% to 13.3%.
This was a historic employment surprise that sharply defied experts' forecasts, which had initially expected a loss of 7.5 million jobs and an unemployment rate close to 20%.
President Donald Trump welcomed the employment data recovery, calling it a day of great resurgence and expressing expectations for rocket-like growth that goes beyond a 'V-shaped' recovery.
The employment boom also drove oil prices. On this day, West Texas Intermediate (WTI) crude oil for July delivery closed at $39.55 per barrel, up 5.7% ($2.14). The weekly gain reached 11%. News that major oil-producing countries agreed to extend production cuts for another month also supported the oil price rally.
Prices of safe assets fell sharply across the board. On the New York Mercantile Exchange, gold for August delivery closed down 2.6% ($44.40) at $1,683.00 per ounce.
US Treasury yields also surged. The yield on the 10-year US Treasury bond entered the 0.9% range on this day. Rising bond yields mean falling bond prices. The rise in yields on safe assets like bonds indicates a reduced preference for safe assets due to easing crisis concerns.
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