NY Dow hits high for the first time in 9 months at $ 30,000

On the 16th in the US New York stock market , the Dow Jones Industrial Average, which is made by major companies, hit a record high for the first time in nine months. The new coronavirus of vaccine expected to commercialization, was pushed up US stock prices to a level higher than the previous corona crisis. The market is optimistic about the outlook for the US economy, but the current infection situation is steadily worsening and the risk of a catastrophic collapse is smoldering.

The Dow Jones Industrial Average closed at $ 29,950,44 on the 16th, up $ 470.63 (1.60%) from the previous weekend. It hit a record high ($ 29,551.42) on February 12 and approached the first-ever $ 30,000 mark in less than $ 50.Of the day stock prices had led to is, by the US pharmaceutical companies Moderna new corona of the vaccine 's announcement of the development. Final clinical trialAs a result of the (clinical trial), the effect (effectiveness) of preventing the onset was 94.5%. Last week, US pharmaceutical giant Pfizer also said it was "more than 90% effective."

The two companies will soon apply for an emergency use permit from the US Food and Drug Administration (FDA). The FDA requires at least 50% efficacy as a condition for regulatory approval. Vaccines in the market due to a series of numbers exceeding expectations expectations, there were high expectations early commercialization of would reduce infections and accelerate economic recovery.

The stocks that rose sharply on the 16th were prominent in industries such as Boeing, United Airlines , Walt Disney, and ExxonMobil, where the stagnation of economic activity due to the corona stagnation hit the business results directly. On the contrary, Netflix stocks that have benefited from expanding home work, such as and Zoom Video Communications, were sold. The Dow Jones Industrial Average plummeted to the $ 18,000 level in March due to the spread of the new corona . Since then, stock prices have recovered amid the ongoing corona crisis, thanks to the contributions of well-performing IT stocks and the support of policies.

The Federal Reserve Board (FRB) has embarked on unprecedented monetary easing , with total wealth rising from $ 4 trillion at the beginning of the year to over $ 7 trillion. The US government has prevented the economy from bottoming out with a total of $ 3 trillion in economic measures, including cash benefits.

The turmoil over the US presidential election was a cause for concern, but with the Democratic Party 's former Vice President Joe Biden 's victory solidifying, the sense of caution receded , and expectations for the practical application of the vaccine overlapped. US financial giant JP Morgan predicts that the stock price level of large US companies will rise by about 25% by the end of next year. Investors are increasingly taking risks.

However, in Japan, the United States and Europe, corona infections are rampant as autumn deepens. In the United States, the average number of new infections per day has reached 150,000 over the past week. It is the worst level ever, increasing by 80% compared to two weeks ago. The number of deaths per day has exceeded 1,000, and the crisis at the “national crisis” level continues, and the financial markets may be shaken again.There is a view that the vaccine will be widely inoculated as early as the middle of next year. Most of the US government's financial support has already expired. "I'm worried that personal consumption , which is a pillar of the US economy, can withstand the spread of vaccines ," said an executive at a US investment company . The market is paying attention to whether the ruling and opposition parties in the US Congress can agree on additional support measures by January next year when Mr. Biden becomes president .

Source: https://www.asahi.com/articles/ASNCK2CHPNCKUHBI005.html