New York Stock Market Smiles Again... Trump Discharge Effect and Stimulus Expectation (Comprehensive)

Nasdaq Rises Over 2%... US Services PMI Exceeds Expectations
Oil Prices Also Strong... Approaching $40 Mark

[Image source=AP Yonhap News]

[Asia Economy New York=Correspondent Baek Jong-min] The New York stock market surged on news of U.S. President Donald Trump's early discharge and expectations of an agreement on a stimulus bill.

On the 5th (local time), the Dow Jones Industrial Average closed at 28,148.64, up 465.83 points (1.68%), the S&P 500 index rose 60.16 points (1.8%) to 3,408.60, and the Nasdaq index surged 257.47 points (2.32%) to 11,332.49.

That day, the New York stock market started strong on hopes of President Trump's discharge, and when Trump announced his discharge at 6:30 p.m. via Twitter, the upward momentum further increased.

Technology stocks, which had large declines in last week's final trading session, showed a notable rebound. By stock, Apple surged 3%, Tesla rose 2.5%, Amazon increased by over 2%, and Facebook also showed gains in the 1% range. Regeneron, the manufacturer of the COVID-19 treatment prescribed to President Trump, saw its stock price jump 7%.

President Trump's urging for an agreement on the stimulus bill even while hospitalized was also evaluated as providing nourishment to the stock market that day. Trump himself mentioned the stock market surge after the market closed.

The market also assessed that the fact that Democratic presidential candidate Joe Biden is significantly widening the gap with President Trump has contributed to the stability of the U.S. stock market.

If Biden shows a clear lead, the possibility of President Trump rejecting the election results decreases, which could reduce the instability that the market fears.

The economic indicators released that day were also positive. The Institute for Supply Management (ISM) announced that the September Services Purchasing Managers' Index (PMI) rose from 56.9 last month to 57.8. The September PMI was better than the expert forecast of 57.0 compiled by The Wall Street Journal.

International oil prices also reacted strongly to the news of President Trump's discharge. West Texas Intermediate (WTI) crude oil for November delivery closed at $39.22 per barrel, up 5.9% ($2.17) from the previous trading day. Oil prices had plunged more than 4% on the 2nd, immediately after President Trump's COVID-19 diagnosis.

Gold for December delivery closed at $1,920.10 per ounce, up 0.7% ($12.50).