[Asia Economy New York=Correspondent Baek Jong-min] Despite weak employment indicators, expectations for a stimulus bill agreement lifted the New York stock market.
Nancy Pelosi, Speaker of the U.S. House of Representatives, is holding a press conference on the 4th. Speaker Pelosi mentioned, "There is sufficient momentum for an agreement on the stimulus bill." [Image source=Reuters Yonhap News]
On the 4th (local time), the Dow Jones Industrial Average closed at 32,218.26, up 248.74 points (0.83%) from the previous session, the S&P 500 index rose 32.4 points (0.88%) to 3,699.12, and the Nasdaq index closed at 12,464.23, up 87.05 points (0.7%).
The weekly gains were 1% for the Dow, 1.7% for the S&P 500, and 2.1% for the Nasdaq. All three major indices closed at record highs.
The November employment data released before the market opened was below expectations, but the stimulus bill negotiations supported the market.
The U.S. Department of Labor reported that nonfarm payrolls increased by 245,000 in November, falling significantly short of market expectations. The unemployment rate dropped to 6.7%, which was interpreted as due to a decline in the labor force participation rate to 61.5%, down 0.2 percentage points from the previous month.
Nevertheless, the New York stock market started higher and maintained the momentum until the close. The deteriorated employment data actually increased hopes for the passage of the stimulus bill.
House Speaker Nancy Pelosi told reporters that day, "There is sufficient momentum for an agreement." Speaker Pelosi had spoken with Senate Republican Leader Mitch McConnell the previous day.
President-elect Joe Biden also held a press conference regarding the November employment data, urging the passage of the stimulus package by saying, "This situation requires urgent action."
International oil prices also continued to rise on expectations of a stimulus bill agreement. West Texas Intermediate (WTI) crude oil for January delivery rose 1.4% ($0.62) to close at $46.26 per barrel.
On the New York Mercantile Exchange, February delivery gold closed down 0.1% ($1.10) at $1,840 per ounce.
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