[Asia Economy New York=Correspondent Baek Jong-min] The Dow Jones Industrial Average, which had surged on hopes for a COVID-19 vaccine, reversed to a decline. The Nasdaq index returned to a strong upward trend.
On the 11th (local time), the Dow fell 23.29 points (0.08%) to close at 29,397.63, the S&P 500 index rose 27.13 points (0.77%) to 3,572.66, and the Nasdaq increased 232.57 points (2.01%) to finish at 11,786.43.
The correction in the Dow, which had surged on hopes for the Pfizer and BioNTech COVID-19 vaccine, is notable. While the sharp rise in cyclical and value stocks has ended, technology stocks, which had fallen due to concerns over reduced benefits from COVID-19, rebounded collectively.
Expectations for market gains remain strong. On this day, Goldman Sachs forecasted that the S&P 500 would rise 4% from current levels to reach 3,700 by year-end. Furthermore, it predicted a 16% increase to 4,300 by the end of 2021. The target for the end of 2022 was set at 4,600.
Goldman Sachs stated, "Vaccine development has a greater impact on the market and economy than the economic policies of President-elect Joe Biden," recommending a buying strategy focused on value stocks.
JP Morgan also reflected optimism about the COVID-19 vaccine, estimating that the U.S. stock market will maintain a strong upward trend next year. JP Morgan expects the S&P 500 to surpass 3,600 this year and reach 4,500 by the end of next year.
International crude oil prices rose for the third consecutive day. December delivery West Texas Intermediate (WTI) crude oil closed up 0.2% (0.09 dollars) at 41.45 dollars per barrel. December delivery gold closed down 0.8% (14.80 dollars) at 1,861.60 dollars per ounce.
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