Concerns Over Stimulus Bill Delay Amid Europe COVID-19 Resurgence
Sluggish Dollar Surges Sharply
[Asia Economy New York=Correspondent Baek Jong-min] On the 21st (local time), the New York stock market is experiencing a sharp decline, causing significant turmoil in the financial markets.
As of 11:20 AM, the Dow Jones Industrial Average is down 3.3%, the S&P 500 is down 2.56%, and the Nasdaq is down 2.09%. According to CNBC, the Dow's drop today is the largest since June 11. The S&P 500 is also experiencing its biggest decline since September 8.
Major tech stocks such as Apple and Tesla are also unable to avoid weakness.
The sharp decline in the New York stock market today is interpreted as being influenced by concerns over the worsening COVID-19 situation in Europe and difficulties in economic support measures between the U.S. government and Congress.
Conflict between the ruling and opposition parties over the nomination and confirmation of the new Supreme Court Chief Justice has pushed economic support bills to the background.
The resignation of the founder of Nikola, a hydrogen truck company accused of fraud, and reports related to illegal money laundering by major global banks are also evaluated to be negatively impacting the market.
Gold and oil prices are also plummeting. International gold prices fell by 2.95% today, forming around $1,904, barely holding the $1,900 level. West Texas Intermediate (WTI) crude oil also dropped by 5%, breaking below the $40 mark.
On the other hand, the value of the dollar surged. The Dollar Index, which shows the dollar's value against major currencies, rose by 0.88% today, forming around the 93.7 level.
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