New York Stock Markets’flop’ over Georgia elections and blockade burdens… Dow closes down 1.25%

New York Stock Markets'flop' over Georgia elections and blockade burdens...  Dow closes down 1.25%
New York Stock Markets’flop’ over Georgia elections and blockade burdens… Dow closes down 1.25%

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(New York = Yonhap News) Correspondent Oh Jin-woo, United Infomax Correspondent = In the New York stock market, major indexes declined due to uncertainty in the final vote of the US Senate in Georgia and the burden of strengthening blockade measures by major countries.

On the 4th (hereafter Eastern time), the Dow Jones 30 Industrial Average on the New York Stock Exchange (NYSE) closed at 30,223.89, down 382.59 points (1.25%) from the battlefield.

The Standard & Poor’s (S&P) 500 index closed at 3,700.65, down 55.42 points (1.48%) from the battlefield, and the technology stock-oriented NASDAQ index closed at 12,698.45, down 189.84 points (1.47%).

The mayor watched the spread of the novel coronavirus infection (Corona 19), the country’s containment policies in response, and the Georgia runoff vote held the next day.

The main index rose brightly at the beginning of the market due to the expectation that the economy will recover rapidly this year with the spread of the Corona 19 vaccine. The Dow and S&P 500 indexes regained their all-time highs.

The indexes, however, declined sharply as bad news, including reports related to strengthening blockade measures by Germany and Britain, also emerged.

The Dow fell more than 700 points at one time during the day.

Germany is known to extend the national blockade, originally scheduled until the 10th, until the end of this month.

In Britain, Prime Minister Boris Johnson announced the reintroduction of blockades across the region in a public speech. Not only non-essential shops but also schools at all levels will be closed until mid-February.

As the situation of Corona 19 worsens, including the spread of the mutant virus, blockade measures by each country have been further strengthened.

In the United States, the situation is still not good, as the number of inpatients for COVID-19 over the weekend set another record high.

Vaccines developed by Pfizer and Modena began to be vaccinated around the world from the end of last year, but some point out that the vaccination rate was slower than expected.

Accordingly, various attempts to speed up are underway, such as the US government reviewing a plan to increase the number of vaccinations by reducing the dose of modder or vaccine to half the amount of the dose.

The US officials explained that half the dose of modder or vaccine showed similar preventive effects.

Tensions over the final vote of the US Senate in Georgia are also tense.

If the Democratic Party prevails in this election, in which two lawmakers are elected, the so-called’Blue Wave’ that governs even the Senate is completed. In this case, the burden of tightening regulations and tax increases may rise again.

On the other hand, if the Republican Party holds at least one seat, it can continue to dominate in the Senate.

Georgia is classified as a traditional Republican garden, but in the last presidential election, President-elect Joe Biden won by chance. In this final poll, the two parties’ candidates are Park Bing-in.

By stock on the day, Tesla’s share price rose by about 3.4%, showing good performance. This was due to the fact that vehicle delivery in the fourth quarter of last year exceeded market expectations. Modena also rose by 7%. It is interpreted that the discussion on how to reduce the inoculation dose of the Corona 19 vaccine in half was positive.

By industry, all sectors declined, except that energy rose 0.13%. Industrial stocks fell 2.55% and technology stocks fell 1.79%.

The economic indicators released on this day were mixed.

According to information provider IHS Markit, the US Manufacturing Purchasing Managers Index (PMI) final value (seasonal adjustment) in December was 57.1, up from the previous month’s final value of 56.7. It was the highest since September 2014. It also exceeded the previously announced preliminary value of 56.5.

The U.S. Department of Commerce announced that construction spending in November was estimated at $1.45 trillion (seasonal adjustment), up 0.9% from the previous year. It did not reach an increase of 1.1% compared to the previous report, the Wall Street Journal’s expert survey.

New York stock market experts diagnosed the stock market could be volatile depending on the outcome of the Georgia state elections.

Oppenheimer’s Chief Investment Strategist John Stoltzpus warned, “If all Democratic candidates win the Georgia runoff, the S&P 500 could drop 10%.”

He pointed out that Wall Street investors as well as entrepreneurs are concerned that if the Democratic Party takes up the Senate, it will be a bad sign for companies due to possible corporate tax increases.

On the Chicago Options Exchange (CBOE), the volatility index (VIX) surged 18.55% from the previous trading day to 26.97.

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