Positive Impact of August Manufacturing PMI
Stock Market Rally...Dollar Weakness Also Reversed
[Asia Economy New York=Correspondent Baek Jong-min] The New York stock market showed a significant rise in the first trading day of September, fueled by a surprising recovery in the manufacturing sector. While the falling dollar value and U.S. Treasury yields also escaped their weakness, gold hesitated just below the $2,000 mark.
On the 1st (local time), the Dow Jones Industrial Average closed at 28,645.66, up 215.61 points (0.76%), the S&P 500 rose 26.34 points (0.75%) to 3,526.65, and the Nasdaq increased by 164.21 points (1.39%) to 11,939.67.
On that day, the New York stock market, which started mixed amid a deepening dollar weakness, reversed following the release of the manufacturing PMI at 10 a.m.
According to the Institute for Supply Management (ISM), the manufacturing Purchasing Managers' Index (PMI) for August rose from 54.2 in the previous month to 56.0. This was interpreted as a major positive factor that could dispel concerns about delayed U.S. economic recovery due to the resurgence of COVID-19.
The direction of the dollar value was even more dramatic than the stock market. The dollar index, which shows the dollar value against major currencies, was formed at around 91.80, down about 0.3% before the manufacturing PMI announcement, but turned strong after the PMI release, recording a 0.21% increase to 92.325.
On that day, the dollar value showed weakness against the euro in the morning, reflecting assessments that the Eurozone's economic recovery, including Germany's, was accelerating, but returned to a level comparable to the previous day in the afternoon.
Gold, which moves inversely to the dollar's direction, reached $2,000 per ounce during the day but closed with a reduced decline, trading at $1,978.90 per ounce, up 0.02% ($0.30).
October delivery West Texas Intermediate (WTI) crude oil also closed at $42.76 per barrel, up 0.4% ($0.15) from the previous day, on expectations of U.S. economic recovery.
On that day, Apple led the market by rising 3.98%, fueled by reports of large-scale component orders for the release of 75 million 5G iPhones. Video conferencing solution provider Zoom soared 40% as its second-quarter revenue more than quadrupled compared to the same period last year. Tesla closed down 4.67% after announcing a $5 billion rights offering.
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