Nasdaq 12,000 · Dow 29,000... New York Stock Market Smiles Broadly

[Asia Economy New York=Correspondent Baek Jong-min] The New York stock market surged, dispelling concerns over weak employment data. The Dow Jones Industrial Average recovered the 29,000 level for the first time since February, and the Nasdaq index surpassed the 12,000 mark.

[Image source=Reuters Yonhap News]

On the 2nd (local time), the Dow Jones Industrial Average closed at 29,100.50, up 454.84 points (1.59%), the S&P 500 index rose 54.19 points (1.54%) to 3,580.84, and the Nasdaq index increased by 116.78 points (0.98%) to 12,056.44.

On this day, the Dow joined the rally led by the S&P 500 and Nasdaq. The Dow surpassed the 29,000 level for the first time since February, just before the outbreak of the COVID-19 pandemic. The Dow had been relatively limited in its gains as it was somewhat excluded from the economic recovery following the COVID-19 recession. The Nasdaq succeeded in breaking through the historic 12,000 level for the first time.

According to data released by Automatic Data Processing (ADP), private sector employment in the U.S. increased by 428,000 in August, falling far short of market expectations of 1.17 million. However, reports that the U.S. Centers for Disease Control and Prevention (CDC) instructed frontline states to prepare for COVID-19 vaccine distribution by late October or early November helped boost the indices. This was interpreted as suggesting the possibility of vaccine distribution before the U.S. presidential election.

Tesla, which had surged due to a stock split, fell more than 14% intraday after news of the sale of shares by its two largest shareholders, closing down 5.83% at $447.37. Apple also closed down 2.07%.

October delivery West Texas Intermediate (WTI) crude oil closed sharply down 2.9% ($1.25) at $41.51 per barrel. December delivery gold closed up 0.02% ($0.30) at $1,978.90 per ounce.