[New York Close] Dow Up 0.13% on Possibility of US Stimulus Package Agreement

Index Fluctuations Amid Uncertainty Over Stimulus Measures
Mixed Economic Indicators Show Both Positive and Negative Signs
Oil Prices Fall Due to Spain Madrid Re-lockdown News

[Asia Economy Reporter Naju-seok] The U.S. stock market recorded a slight rise due to expectations of a new economic stimulus package negotiation agreement.

[Image source=AP Yonhap News]

On the 1st (local time) at the New York Stock Exchange (NYSE), the Dow Jones Industrial Average rose 0.13% (35.20 points) from the previous session to close at 27,816.90, the Standard & Poor's (S&P) 500 index increased 0.53% (17.80 points) to 3,380.80, and the Nasdaq index ended trading up 1.42% (159.00 points) at 11,326.51.

The New York stock market showed optimism following news that Treasury Secretary Steven Mnuchin and Democratic House Speaker Nancy Pelosi engaged in negotiations regarding the economic stimulus package, with some progress reported. However, media reports that Speaker Pelosi and the White House expressed negative reactions to the negotiations caused the market to briefly turn downward during the session compared to the previous day. Overall, the market remains highly attentive to the direction of the stimulus package.

Economic indicators showed mixed signals, failing to find a clear direction. Regarding employment, the U.S. Department of Labor announced that initial jobless claims last week decreased by 36,000 from the previous week to 837,000 (seasonally adjusted), falling short of the market expectation of 850,000. Additionally, the U.S. Department of Commerce reported that August personal consumption expenditures (PCE) increased by 1.0% (seasonally adjusted) compared to the previous month. Both employment and consumption exceeded market expectations, serving as positive factors.

However, manufacturing indices did not meet market expectations. The Institute for Supply Management (ISM) announced that the September manufacturing Purchasing Managers' Index (PMI) fell from 56.0 in the previous month to 55.4, below the market forecast of 56.3.

Overall, while the market remained alert to the stimulus package's direction, technology stocks showed an upward trend. The Nasdaq index rose, with Facebook increasing by 1.8%.

European stock markets closed mixed. Germany's DAX index fell 0.23% (29.96 points) to 12,730.77 compared to the previous trading day. The UK's FTSE index rose 0.23% (13.35 points) to 5,879.45, and France's CAC index increased 0.43% to 4,824.04.

European markets were negatively affected by news of rising COVID-19 cases within Europe. However, expectations of new economic stimulus package negotiations between the U.S. government and Congress acted as a positive factor supporting the market.

On the same day, the Spanish government ordered lockdown measures in the capital Madrid and surrounding areas. Movement is restricted except for commuting, hospital visits, and essential shopping.

Due to the news of the Madrid lockdown and other factors, West Texas Intermediate (WTI) crude oil November futures fell 3.7% ($1.50) to $38.72 per barrel compared to the previous session. UK North Sea Brent crude December futures dropped 3.2% ($1.37) to $39.92 per barrel.

December gold prices closed up 1.1% ($20.80) from the previous trading day at $1,916.30.