Safe assets are weak
[Asia Economy New York=Correspondent Baek Jong-min] The Dow Jones Industrial Average in the U.S. New York stock market closed above the 30,000 mark for the first time ever.
On the 24th (local time) in the New York stock market, the Dow Jones index closed at 30,046.24, up 454.97 points (1.54%) from the previous day. This is the first time the Dow Jones index has surpassed 30,000 both intraday and at closing.
In addition to the Dow Jones, the S&P 500 and Nasdaq indices also rose sharply by 1.6% and 1.3%, respectively, with major New York stock market indices surging simultaneously.
Regarding the rise in indices that day, CNBC attributed it to the start of the transition process for U.S. President-elect Joe Biden, which alleviated political uncertainties. The news that former Federal Reserve Chair Janet Yellen was nominated as Treasury Secretary also contributed to the index rise by raising expectations for a large-scale economic stimulus package.
The ongoing good news about the COVID-19 vaccine has increased the possibility of economic recovery, which is also considered a factor driving the recent rise in indices.
This situation is affecting not only the stock market but also the oil, gold, and bond markets.
On that day, West Texas Intermediate (WTI) crude oil for January delivery rose sharply by 4.3% ($1.85) to close at $44.91 per barrel. This is the highest price since March 6, early in the COVID-19 crisis.
Gold, a representative safe-haven asset, weakened. December delivery gold fell 1.8% ($33.20) to close at $1,804.60 per ounce.
U.S. Treasury bonds also remained weak. The 10-year U.S. Treasury yield rose by 0.03 percentage points to 0.884%. An increase in bond yields means a decline in bond prices.
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