Only Tech Stocks Rally... Nasdaq Hits Another Record High (Comprehensive)

[Asia Economy New York=Correspondent Baek Jong-min] The Nasdaq index showed strength alone in the New York stock market. While the Dow Jones Industrial Average, reflecting traditional industries, and the S&P 500 index, representing the overall U.S. stock market, repeatedly failed to rise further, technology stocks continued to hit new highs.

On the 9th (local time), the Dow Jones Industrial Average fell 361.19 points (1.39%) to close at 25,706.09, the S&P 500 index dropped 17.89 points (0.56%) to 3,152.05, and the Nasdaq index rose 55.25 points (0.53%) to finish at 10,547.75.

[Image source=EPA Yonhap News]

On this day, the market focused on economic indicators and the resurgence of COVID-19, but the Nasdaq did not stop its upward momentum and continued to surge. Amazon led the gains, rising about 3.3%.

When Florida announced that new COVID-19 deaths and hospitalizations surged to record highs in a single day, the Dow and S&P 500 indices both plunged. However, the fact that the number of deaths was not high despite the rapid spread of infections limited further deterioration in investor sentiment.

Anthony Fauci, director of the U.S. National Institute of Allergy and Infectious Diseases (NIAID), advised that states currently experiencing severe COVID-19 outbreaks should seriously consider re-lockdowns.

News of layoffs at major companies also affected investor sentiment on this day. Large pharmacy chain Walgreens announced quarterly results and revealed plans to cut 4,000 jobs in the UK. Walgreens’ stock price fell by 7.8%. There was also speculation that major U.S. bank Wells Fargo might carry out large-scale layoffs starting at the end of the year. Wells Fargo is taking steps to strengthen financial soundness, such as announcing dividend cuts following the Federal Reserve’s stress tests.

The weekly initial jobless claims released on this day were better than market expectations. The Department of Labor announced that last week’s initial jobless claims decreased by 99,000 from the previous week to 1,314,000. The number of people claiming unemployment benefits for more than one week also decreased by 698,000 to 18,062,000.

Although the number of unemployed continues to decline, the fact that over one million people are still filing for unemployment benefits weekly remains a concerning situation that warrants caution.

U.S. Treasury Secretary Steven Mnuchin expressed his intention to provide additional cash payments to the public. However, Mnuchin refrained from giving specific comments on whether to lower the income eligibility criteria for individuals receiving the cash.

August delivery West Texas Intermediate (WTI) crude oil closed down 3.1% ($1.28) at $39.62 per barrel. August delivery gold closed at $1,803.80 per ounce, down 0.9% ($16.80) from the previous day.