Amazon Target Price Raised by 28%, New York Stock Market Reacts Strongly

[Image source=AP Yonhap News]

[Asia Economy New York=Correspondent Baek Jong-min] The New York stock market rose across the board on the 20th (local time) amid Amazon's strong performance.

On the 20th (local time), the Dow Jones Industrial Average closed at 26,680.87, up 8.92 points (0.03%), the S&P 500 index rose 27.11 points (0.84%) to 3,251.84, and the Nasdaq index surged 263.90 points (2.51%) to 10,767.09.

With this rise, the S&P 500 index turned to a 0.6% gain for the year, and the Nasdaq once again set an all-time high record.

Amazon's stock price surged 7.9% on the day, marking its largest increase since March. Although the major New York stock indices showed mixed trends at the opening, the sharp rise in Amazon's stock price spread buying momentum throughout the market.

The rise in Amazon's stock price is attributed to Goldman Sachs raising its target price by 28% to $3,800, citing an increase in online commerce following the COVID-19 pandemic. This target price is nearly 20% higher than Amazon's closing price of $3,196.84 on the day. CNBC reported that Goldman Sachs' target price for Amazon is the highest on Wall Street. Investment bank Jefferies also presented the same target price as Goldman Sachs.

Besides Amazon, major Nasdaq leaders such as Microsoft, Alphabet, Apple, and Facebook all showed strong gains.

August delivery West Texas Intermediate (WTI) crude oil closed at $40.81 per barrel, up 0.5% ($0.22) from the previous trading day. August delivery gold rose 0.4% ($7.40) to $1,817.40 per ounce.