New York Stock Market Closes Strong on Hopes for COVID-19 Treatments and Vaccines

[Image source=AP Yonhap News]

[Asia Economy New York=Correspondent Baek Jong-min] The New York stock market rose on the back of expectations for treatments and vaccines for the novel coronavirus infection (COVID-19).

On the 10th (local time), the Dow Jones Industrial Average rose 369.21 points (1.44%) to close at 26,075.30, the S&P 500 index rose 32.99 points (1.05%) to 3,185.04, and the Nasdaq index closed up 69.69 points (0.66%) at 10,617.44. The Nasdaq set a new all-time high once again.

Good news about COVID-19 treatments and vaccines led the market rally. Gilead Sciences released research results showing that the treatment remdesivir reduces the mortality rate of COVID-19 patients by more than 60% compared to conventional treatments. U?ur ?ahin, CEO of BioNTech, which is developing a COVID-19 vaccine together with Pfizer, predicted in an interview with The Wall Street Journal that they will be ready to apply for vaccine approval from regulatory authorities by the end of this year.

The economic indicators released that day fell short of expectations. The U.S. Department of Labor announced that the Producer Price Index (PPI) for June fell 0.2% compared to the previous month. This result was below the Dow Jones consensus forecast of a 0.4% increase.

Robert Kaplan, President of the Federal Reserve Bank of Dallas, stated that inflationary pressures are unlikely to appear for the time being and argued that additional fiscal support such as unemployment insurance benefits is necessary.

West Texas Intermediate (WTI) crude oil for August delivery closed at $40.55 per barrel, up 2.4% ($0.93) from the previous trading day. Gold for August delivery closed down 0.1% ($1.90) at $1,801.90 per ounce.