Dow Jones Index Up 11.8% in November... Highest Increase Since 1987

[Image source=Reuters Yonhap News]

[Asia Economy New York=Correspondent Baek Jong-min] In the last trading session of November on the New York Stock Exchange, major indices fell, but the Dow Jones Industrial Average recorded the highest monthly gain since 1987.

On the 30th (local time), the Dow fell 271.73 points (0.9%) to close at 29,638.64, the S&P 500 dropped 16.72 points (0.5%) to 3,621.63, and the Nasdaq fell 7.11 points (0.1%) to 12,198.74.

The market decline was led by energy and travel-related stocks, which had shown recent strength. Oil major Chevron fell by 4.5%. Cruise operators Carnival and Norwegian Cruise Line dropped 7.4% and 3.4%, respectively. Airline stocks also declined, with American Airlines down 5% and Delta Air Lines falling 2%.

CNBC reported that despite the decline, the Dow posted an 11.8% monthly gain, marking the highest monthly increase since 1987. Although COVID-19 is spreading rapidly again, optimism about vaccines is cited as the reason for the market rally.

The S&P 500 recorded a monthly gain of 10.8%, and the Nasdaq rose 11.8%. Both indices showed their highest monthly gains since April.

Among the Dow components, Boeing surged 45.9% in November, recording the highest monthly gain. American Express was second with a 30% increase, and Chevron rose 25%, ranking third. Overall, the index components showed strong gains.

After the market closed, video conferencing solution provider Zoom reported its Q3 earnings and future outlook, and its shares fell 5% in after-hours trading.

International crude oil prices weakened amid uncertainties surrounding the extension of production cuts by oil-producing countries.

West Texas Intermediate (WTI) crude for January delivery fell 0.4% ($0.19) to close at $45.34 per barrel.

Safe-haven gold prices continued to decline. February delivery gold fell 0.4% ($7.20) to $1,780.90 per ounce.