[Asia Economy Reporter Jeong Hyunjin] On the US New York stock market, the S&P 500 index once again failed to reach an all-time high due to the ongoing deadlock in negotiations over the US fiscal stimulus package, while the Nasdaq index hit a record high, driven by strong performance in technology stocks.
According to CNBC and others, on the New York Stock Exchange (NYSE), the Dow Jones Industrial Average closed at 27,844.91, down 0.31% (86.11 points) from the previous session. The S&P 500 index rose 0.27% (9.14 points) to close at 3,381.99, and the Nasdaq index ended the day up 1.00% (110.42 points) at 11,129.73.
The market had expected the S&P 500 index to surpass its all-time high of 3,386.15 set on February 19, but after briefly exceeding that level early in the session, the S&P 500 index fell slightly again.
The market focused on the US stimulus package negotiations in response to COVID-19 and escalating tensions between the US and China. The Democratic and Republican parties announced that they remain deadlocked over a new stimulus package. The Democrats proposed sending more than $900 billion at once to state and local governments, while the Republicans did not include additional support for state and local governments.
With the Democrats and the White House engaged in a dispute over mail-in voting issues, uncertainty about negotiations related to the new stimulus package is increasing. The Democrats officially nominated their presidential candidate at this week’s convention, marking the official start of the presidential race.
Additionally, news related to US-China relations also affected investor sentiment. The US Department of Commerce further tightened sanctions preventing Chinese telecommunications company Huawei and its subsidiaries from purchasing semiconductors and other technology made with US technology. Moreover, 38 more Huawei subsidiaries were added to the sanctions list.
The Nasdaq index reached a record high as major tech stocks Alphabet and Microsoft (MS) rose 0.7% each, and Amazon increased by 1.1%, CNBC reported. On the same day, a foreign media outlet reported that Amazon is negotiating to invest in cloud company Rackspace, which boosted its stock price. Tesla’s stock also surged 11.2%, hitting an all-time high.
International crude oil prices closed higher amid reports that major oil-producing countries fulfilled their production cut promises last month. On the New York Mercantile Exchange (NYMEX), September delivery West Texas Intermediate (WTI) crude oil closed at $42.89 per barrel, up 2.1% (0.88 dollars).
International gold prices closed higher as well, with December delivery gold on the New York Commodity Exchange rising 2.5% ($48.90) to $1,998.70 per ounce. According to financial information provider FactSet, this was the largest increase in dollar terms since April 22.
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