[Asia Economy New York=Correspondent Baek Jong-min] The New York stock market recorded gains, overcoming concerns over the resurgence of the novel coronavirus infection (COVID-19) amid the strong performance of the Chinese stock market.
On the 6th (local time), the Dow Jones Industrial Average closed at 26,287.03, up 459.67 points (1.78%), the S&P 500 index rose 49.71 points (1.59%) to 3,179.72, and the Nasdaq index finished at 10,433.65, up 226.02 points (2.21%).
The Nasdaq once again reached an all-time high, leading the market rally. Amazon rose 5.77% to $3,057.04, entering the $3,000 range for the first time ever. Uber, which acquired the food delivery company Postmates, surged 6%.
The Shanghai Composite Index in China also surged 5.71% to 3,332.88, boosting investor sentiment. This was the largest increase since 2018.
U.S. economic indicators were also favorable. The Institute for Supply Management (ISM) announced that the June non-manufacturing PMI rose 11.7 points from the previous month to 57.1, exceeding expectations. A PMI above 50 indicates expansion. This means that the service sector, which accounts for two-thirds of the U.S. economy, has moved from a contraction phase of about two months into an expansion phase.
However, investment bank Goldman Sachs downgraded its U.S. economic growth forecast for this year, citing the resurgence of COVID-19. According to CNBC and other broadcasts, Goldman Sachs revised its forecast for the overall U.S. GDP growth rate this year from -4.2% to -4.6%. Goldman Sachs also lowered its Q3 GDP growth forecast from 33% to 25%.
Goldman Sachs explained that despite recent positive economic indicators, the resurgence of COVID-19 has begun to impact the economy.
August delivery West Texas Intermediate (WTI) crude oil closed at $40.63 per barrel, down 0.05% ($0.02). August delivery gold rose 0.2% ($3.50) from the previous trading day to $1,793.50 per ounce.
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