[Asia Economy New York=Correspondent Baek Jong-min] The New York stock market fell amid concerns over a short-term surge and the possibility of a sluggish economic recovery.
On the 7th (local time), the Dow Jones Industrial Average dropped 396.85 points (1.51%) to close at 25,890.18, the S&P 500 index fell 34.40 points (1.08%) to 3,145.32, and the Nasdaq index declined 89.76 points (0.86%) to 10,343.89. Although the Nasdaq briefly hit an intraday high at the opening, it could not withstand the selling pressure.
Raphael Bostic, President of the Federal Reserve Bank of Atlanta, expressed concerns that the U.S. economic recovery is not as smooth as expected. In a speech that day, he warned, "Economic activity in some regions is stagnating again due to the resurgence of COVID-19, and corporate worries are growing." Loretta Mester, President of the Cleveland Fed, also testified to the economic stagnation caused by the COVID-19 resurgence.
The resurgence of COVID-19 shows no signs of stopping. CNN reported that many hospitals in Florida have reached the limit of ICU beds. Johns Hopkins University estimated the number of COVID-19 infections in the U.S. at 2.96 million. On the 6th, there were 45,000 new cases.
Novavax, which received $1.6 billion in funding under the U.S. government's "Operation Warp Speed" program aimed at securing a COVID-19 vaccine, saw its stock price surge 31.6%.
As risk factors became prominent, the price of gold, a representative safe-haven asset, closed at $1,809.90 per ounce, up 0.9% ($16.40) for the day. This is the highest level since 2011.
August delivery West Texas Intermediate (WTI) crude oil closed at $40.62 per barrel, down 0.02% ($0.01) from the previous trading day.
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
