New York Stock Market Rises on COVID-19 Vaccine Hopes and Goldman Sachs Earnings Boost (Comprehensive)

[Image source=Reuters Yonhap News]

[Asia Economy New York=Correspondent Baek Jong-min] The New York stock market closed higher on expectations for a COVID-19 vaccine and strong earnings from investment bank Goldman Sachs.

On the 15th (Eastern Time), at the New York Stock Exchange (NYSE), the Dow Jones Industrial Average rose 227.51 points (0.85%) to close at 26,870.10, the S&P 500 index increased 29.04 points (0.91%) to 3,226.56, and the Nasdaq index gained 61.91 points (0.59%) to finish at 10,550.49.

The market rally was driven by news from the previous day that Moderna, a U.S. pharmaceutical company, reported that all 45 participants in its initial COVID-19 vaccine clinical trial developed antibodies with no major side effects.

Goldman Sachs also boosted investor sentiment by reporting earnings that far exceeded market expectations before the opening bell. The bank's net income and revenue for the second quarter increased compared to the same period last year, supported by expanded stock and bond trading and initial public offerings. CNBC reported that this was the largest gap between Goldman Sachs' earnings and estimates in 10 years.

Expectations that U.S.-China relations would not deteriorate further also played a role. On the same day, Bloomberg News reported that U.S. President Donald Trump told close aides that he does not want additional sanctions on Chinese officials and does not want the conflict with China to escalate.

However, concerns about worsening U.S.-China relations had spread after President Trump signed an executive order to end Hong Kong's special status and signed a bill sanctioning banks that do business with Chinese officials involved in implementing the Hong Kong National Security Law the day before.

The resurgence of COVID-19 in the U.S. continues unabated. According to data from Johns Hopkins University, the number of new COVID-19 cases in the U.S. exceeded 67,000 the previous day, setting another record high.

August delivery West Texas Intermediate (WTI) crude oil rose 2.3% (0.91 dollars) to close at $41.20 per barrel, supported by news of a decrease in U.S. crude oil inventories. August delivery gold closed at $1,813.80 per ounce, up 0.02% (0.40 dollars).