[Asia Economy New York=Correspondent Baek Jong-min] The US New York stock market rebounded, recovering from the plunge the day before. However, concerns about the second wave of the novel coronavirus infection (COVID-19), which caused the plunge the day before, remain.
On the 12th (local time), the Dow Jones Industrial Average closed at 25,605.54, up 477.37 points (1.90%), the S&P 500 index rose 39.21 points (1.31%) to 3041.31, and the Nasdaq index increased by 96.08 points (1.01%) to 9588.81.
On a weekly basis, the Dow fell 5.5%, the S&P 500 index dropped 4.78%, and the Nasdaq declined 2.3%. This is the largest drop in about three months since the third week of March.
All three major indices showed strength immediately after the opening, but volatility increased as the Dow briefly fell about 50 points during the session, indicating that unease still remains.
Concerns about the resurgence of COVID-19 continued on this day as well. According to The New York Times (NYT), Texas and Florida, the second and third most populous states among the 50 US states, recorded their highest daily new COVID-19 cases this week.
The Federal Reserve (Fed) also warned about vulnerabilities of households and businesses in its semiannual monetary policy report released on the same day.
However, the economic indicators released on this day raised hopes for economic recovery. The preliminary University of Michigan Consumer Sentiment Index for June was 78.9, up from the finalized 72.3 in the previous month. It also exceeded the market forecast of 75.0 compiled by The Wall Street Journal. This signals a recovery in consumption, a core component of the US economy.
West Texas Intermediate (WTI) crude oil for July delivery closed at $36.26 per barrel, down 0.2% (8 cents). WTI recorded a decline of over 8% this week. August delivery gold closed at $1737.30 per ounce, down 0.1% (2.50 dollars) from the previous day.
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