NY Stock Market Rises on Optimism for Oral COVID-19 Treatment

[Image source=Yonhap News]

[Asia Economy New York=Correspondent Baek Jong-min] The oral COVID-19 treatment led the New York stock market's first trading day in October to a strong performance.

On the 1st (local time), the Dow Jones Industrial Average rose 482.54 points (1.43%) to close at 34,326.46, the S&P 500 index increased by 49.50 points (1.15%) to 4,357.04, and the Nasdaq index gained 118.12 points (0.82%) to finish at 14,566.70.

On that day, the 10-year Treasury yield fell below 1.50%, and with Merck's oral COVID-19 treatment showing positive effects, investor sentiment greatly improved.

There is also growing expectation that if this pill receives approval from health authorities, it could become a game changer in the COVID-19 crisis.

Merck's stock price rose more than 8%. In contrast, vaccine manufacturer Moderna's stock price plunged by 11%.

Expectations for the oral treatment boosted travel stocks. Airline stocks such as United and Southwest soared simultaneously. Cruise and casino-related stocks like Royal Caribbean and Las Vegas Sands also surged sharply.

Oil prices rose despite news that the Organization of the Petroleum Exporting Countries (OPEC) and major non-OPEC oil-producing countries, collectively known as 'OPEC Plus' (OPEC+), are considering increasing production.

The November West Texas Intermediate (WTI) crude oil price closed at $75.88 per barrel, up 85 cents (1.1%) from the previous session. ExxonMobil's stock rose 4% as it forecasted improved earnings due to the rise in oil prices.