New York Stock Market Weakens Amid US Presidential Debate Caution and COVID-19 Resurgence

Technology and Aviation Stocks Decline
Gold Price Rises...Recovers to $1900 per Ounce

[Image source=Reuters Yonhap News]

[Asia Economy New York=Correspondent Baek Jong-min] The US New York stock market closed lower, focusing on the first TV debate ahead of the November presidential election. Meanwhile, gold prices showed strength, recovering to the $1900 level.

On the 29th (local time), the Dow Jones Industrial Average fell 131.40 points (0.48%) to close at 27,452.66, the S&P 500 index dropped 16.13 points (0.48%) to 3,335.47, and the Nasdaq index declined 32.28 points (0.29%) to 11,085.25.

By stock, Apple fell 0.76%, Tesla 0.51%, Amazon 0.92%, showing weakness among tech stocks. Airline stocks such as Delta and United Airlines also struggled due to concerns over the resurgence of COVID-19. Other travel-related stocks like MGM Resorts and Carnival Cruise also declined across the board.

The market reversed to a decline after four trading days, focusing on the direction of the presidential election. Concerns remain that volatility could increase ahead of the November election.

Binky Chadha, Chief Investment Strategist at Deutsche Bank, forecasted, "As the election approaches, the market has tended to show flat or downward trends, but often rises after the election is over."

The worsening COVID-19 situation is also a risk factor. On this day, New York City Mayor Bill de Blasio announced that the positive rate among those tested for COVID-19 exceeded 3% again for the first time since early June.

This means that even New York City, which was preparing to return to normal life with relatively stable COVID-19 management, is experiencing a worsening situation. Mayor de Blasio also warned that strong measures such as lockdowns on non-essential businesses could be reintroduced.

With about a month left before the election, negotiations on the economic stimulus bill between the US Democrats and Republicans are narrowing differences, but the outcome remains uncertain. The Democrats unveiled a new $2.2 trillion stimulus bill the day before. On the morning of this day, House Speaker Nancy Pelosi and Treasury Secretary Steven Mnuchin held a phone call to discuss the bill, but the possibility of a deal remains uncertain. However, the Democrats have lowered their demands, and it is reported that the White House and Republicans are preparing a $1.5 trillion stimulus plan, indicating that the gap between the two sides is narrowing.

Concerns over the resurgence of COVID-19 caused international oil prices to slump. November delivery West Texas Intermediate (WTI) crude oil closed down 3.2% ($1.31) at $39.29 per barrel compared to the previous day.

On the other hand, gold prices recovered to the $1900 per ounce level. This is interpreted as the dollar weakening ahead of the US presidential debate. December delivery gold closed up 1.1% ($20.90) at $1903.20 per ounce.