Dow Jones 30 Closes at 27,739.73, Up 0.17%
S&P 500 and Nasdaq Also Rise 0.32% and 1.06% Respectively
[Asia Economy Reporter Kwon Jae-hee] On the 20th (local time), major indices on the U.S. New York stock market closed higher despite worsening U.S. unemployment data, driven by strength in technology stocks including Apple.
At the New York Stock Exchange (NYSE), the Dow Jones Industrial Average rose 0.17% (46.85 points) from the previous close to 27,739.73, and the S&P 500 index closed at 3,385.51, up 0.32% (10.66 points) from the previous session.
The Nasdaq set another all-time high, closing at 11,264.95, up 1.06% (118.49 points) from the previous day.
On the day, the market showed weakness early on due to concerns over economic recovery following the deterioration of the U.S. weekly unemployment claims data.
The U.S. Department of Labor announced that the number of initial jobless claims last week increased by 135,000 from the previous week to 1,106,000 (seasonally adjusted).
The weekly unemployment claims exceeded 1 million again, surpassing the Wall Street Journal's forecast of 923,000.
Additionally, concerns expressed in the minutes of the July Federal Open Market Committee (FOMC) meeting, released the previous day by the U.S. Federal Reserve (Fed), about a slowdown in economic recovery including employment due to the ongoing COVID-19 crisis also affected the market.
However, major technology stocks such as Apple showed strength and the market returned to an upward trend.
Apple's stock price rose more than 2.2% on the day, pushing its market capitalization above $2 trillion based on the closing price. This is the first time for a U.S.-listed company.
Tesla's stock price also surged more than 6.5%, surpassing $2,000 per share. This is double the price from just over two months ago when it first exceeded $1,000 in June.
Somewhat positive news regarding the U.S.-China trade conflict also acted as a tailwind for the market.
Gao Feng, spokesperson for the Chinese Ministry of Commerce, stated regarding talks to review the implementation of the trade agreement, "Both countries have agreed to communicate soon."
Larry Kudlow, Director of the White House National Economic Council, also said, "We are maintaining the Phase One trade agreement with China and are satisfied with the progress so far, including China's purchases of U.S. products."
By sector, technology stocks rose 1.44%, communication stocks increased 1.37%, while energy stocks fell 2.13%.
However, experts assessed that concerns over difficulties in additional stimulus measures could persist.
Shima Sha, Chief Strategist at Principal Global Investors, said, "The path so far has been really tough, and looking back at what has happened since March, it has been supported by policymakers. Therefore, the market will not rise further until policymakers reach an agreement."
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