New York Stock Market Mixed Despite Strong Employment Data

Gold Prices Rise Further Amid Worsening Dollar Weakness

[Image source=AP Yonhap News]

[Asia Economy New York=Correspondent Baek Jong-min] Although employment indicators showed improvement, the New York stock market closed mixed. The dollar value continued its downward trend.

On the 3rd (local time), the Dow Jones Industrial Average rose 85.73 points (0.29%) to close at 29,969.52, the S&P 500 index fell 2.29 points (0.06%) to 3,666.72, and the Nasdaq index rose 27.82 points (0.23%) to 12,377.18.

The Dow Jones recovered to 30,000 during the session, and the S&P 500 and Nasdaq also recorded intraday highs, but gains narrowed in the afternoon.

Positive U.S. employment news stimulated investor sentiment early in the session. The Department of Labor announced that initial jobless claims last week decreased by 75,000 from the previous week to 712,000, which was lower than the Dow Jones consensus estimate of 780,000. Initial jobless claims returned to a declining trend after three weeks.

The Wall Street Journal positively evaluated that employment moved in the right direction despite the spread of COVID-19.

The market is focusing on the November employment data, including the unemployment rate, to be released by the U.S. government the following day.

However, in the afternoon, gains were trimmed after reports emerged that Pfizer and BioNTech would supply only half of the 100 million COVID-19 vaccine doses planned for this year.

West Texas Intermediate (WTI) crude oil for January delivery next year closed up 0.8% (36 cents) at $45.64 per barrel. This is interpreted as a result of the agreement by OPEC+?the coalition of the Organization of the Petroleum Exporting Countries (OPEC) and major non-OPEC oil producers?to reduce production cuts from 7.7 million barrels per day to 7.2 million barrels per day starting January next year.

International gold prices continued to rise in line with the weak dollar. Gold for February delivery next year closed up 0.6% ($10.90) at $1,841.10 per ounce.

The dollar index, which shows the value of the dollar against major currencies, fell 0.49% from the previous day to 90.665. During the session, the dollar index plunged to as low as 90.502.