[Asia Economy New York=Correspondent Baek Jong-min] The New York stock market closed higher, buoyed by gains in technology stocks ahead of earnings announcements.
On the 27th (local time), the Dow Jones Industrial Average rose 114.88 points (0.43%) to close at 26,584.77, the S&P 500 index increased by 23.78 points (0.74%) to 3,239.41, and the Nasdaq index climbed 173.09 points (1.67%) to finish at 10,536.27.
Moderna, which is developing a COVID-19 vaccine, received over $470 million in additional funding from the U.S. government and announced it has entered Phase 3 clinical trials, boosting investor sentiment.
Major Nasdaq stocks rose ahead of this week’s earnings reports. Apple’s stock price increased about 2.4% on the day, and Amazon also rose more than 1.5%. Facebook was scheduled to announce earnings on the 29th, but due to CEO Mark Zuckerberg’s congressional hearing appearance, the earnings announcement was postponed to the 30th.
On the same day, Senate Minority Leader Mitch McConnell explained a roughly $1 trillion additional stimulus package and announced a reduction in the current $600 weekly unemployment benefit to $200. The Republican Party stated that this support would continue until state governments establish a system to set unemployment insurance payments at 70% of previous income, but the significant reduction and the expected five-month period for local governments to organize the system have raised concerns about a consumer cliff.
Treasury Secretary Steven Mnuchin, the White House, and both Republican and Democratic parties are scheduled to begin negotiations from today, but the prevailing assessment is that the likelihood of an agreement is low.
International gold prices surpassed $1,900 per ounce. On the New York Mercantile Exchange, August delivery gold surged 1.8% ($33.50) from the previous trading day to close at $1,931 per ounce.
September delivery West Texas Intermediate (WTI) crude oil closed up 1% ($0.41) at $41.70 per barrel.
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