[Asia Economy New York=Correspondent Baek Jong-min] Major indices on the New York Stock Exchange closed higher ahead of the Christmas holiday. Analysts attribute this to the easing of Omicron fears, which brought investors back to the market.
On the 23rd (local time), the Dow Jones Industrial Average rose 0.55%, the S&P 500 increased by 0.62%, and the Nasdaq climbed 0.85 percentage points, closing higher.
After three consecutive days of declines, major New York stock indices successfully rebounded with three consecutive days of gains. The S&P 500 closed at an all-time high based on the closing price.
Jim Paulson, Chief Investment Strategist at Leifold Group, said, "The market staged a relief rally as it escaped the panic selling driven by fear." This means that bargain buying flowed in, pushing the market higher.
The rise in the stock market on this day is interpreted as being driven by research findings that the Omicron variant poses less risk compared to the Delta variant, which stabilized investor sentiment.
It is also analyzed that the U.S. Food and Drug Administration (FDA) approving Merck's COVID-19 pill treatment following Pfizer's approval the day before had a positive effect. Merck fell 0.3% on the day.
The Personal Consumption Expenditures (PCE) inflation announced on this day reached 5.7%, raising concerns that interest rate hikes could be accelerated. Consumer spending increased by only 0.6%, showing a slowdown in the month-over-month growth rate.
Hydrogen truck manufacturer Nikola closed up 17% on news of delivering its first truck. Tesla rose another 5.7% following CEO Elon Musk's remarks that his stock sales are nearing completion.
Semiconductor company Micron, which had shown strength due to strong earnings, surged 4.5% on the day, hitting an all-time high.
Bitcoin rose above $50,000, causing Coinbase to soar 5.3%.
The New York Stock Exchange will be closed on the 24th due to Christmas.
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