Dow Jones Soars on COVID Vaccine Hopes... Nasdaq Plummets (Update)

[Image source=Reuters Yonhap News]

[Asia Economy New York=Correspondent Baek Jong-min] Although the cumulative number of confirmed cases of the novel coronavirus infection (COVID-19) in the United States has exceeded 10 million, expectations for vaccine development lifted the Dow Jones Industrial Average in the New York stock market. The Nasdaq index, which had been strong due to expectations of benefiting from COVID-19, instead fell.

On the 9th (local time), the Dow Jones Industrial Average closed at 29,157.97, up 834.57 points (2.95%), the S&P 500 index closed at 3,550.50, up 41.06 points (1.17%), and the Nasdaq index closed at 11,713.78, down 181.45 points (1.53%).

The Dow index surged 5.6% immediately after the opening, seemingly attempting to break through 30,000, but later reduced its losses and closed lower. On this day, the Dow index reached an all-time high based on intraday prices.

Pfizer and Germany's BioNTech ignited investor sentiment by announcing that the interim analysis of the Phase 3 clinical trial of their COVID-19 vaccine showed a prevention efficacy exceeding 90%.

The Dow's strength was due to a sharp rise in the stock prices of traditional industry companies that had been in crisis due to the COVID-19 situation. Industries such as airlines, oil, and finance all rose vertically. AMC, a theater chain that was on the brink of survival, saw its stock price surge 51% in a single day.

On the other hand, stocks that benefited from COVID-19, such as Amazon, Netflix, and Zoom, all plunged. Amazon showed a weak trend, falling 5%, and Zoom dropped as much as 17%.

West Texas Intermediate (WTI) crude oil for December delivery closed at $40.29 per barrel, soaring 8.5% ($3.15) from the previous trading day. This was the largest increase in oil prices since May. It is evaluated that this reflects expectations that the decline in oil demand caused by COVID-19 will be resolved.

Gold prices fell as the preference for safe-haven assets weakened. December delivery gold closed at $1,854.40 per ounce, down 5% ($97.30). Unlike gold prices, the dollar showed strength. The dollar index, which shows the value of the dollar against major currencies, rose 0.65% to 92.820.