Feb. Jobs in the non-agricultural sector’beyond expected’
Treasury yields reversal as the soaring trend subsides
Nasdaq declines weekly standards
[뉴욕=뉴스핌] Correspondent Kim Min-jung = Major indices in the US New York stock market closed higher on the 5th (local time). The stock market, which had fallen due to a surge in government bond interest rates at the beginning of the market, succeeded in reversing the rise by digesting economic indicators as good news.
On the New York Stock Exchange (NYSE), the Dow Jones 30 Industrial Average closed at 31,496.30, up 572.16 points (1.85%) from the previous trading day. It was counted as. The NASDAQ composite index, centered on technology stocks, rose 196.68 points (1.55%) to 12,920.15.
On a weekly basis, the Dow index rose 1.83% and the S&P 500 index rose 0.80%. On the other hand, the NASDAQ index fell 2.06%.
The news that last month’s jobs in the United States increased more than expected was good news for the market. The U.S. Department of Labor said in February that new employment in the non-agricultural sector reached 379,000. This is a relatively large figure above the median estimate of 182,000 experts compiled by Reuters. The unemployment rate also fell from 6.3% to 6.2%.
A faster-than-expected recovery in the job market could certainly be a boon for risky assets, but the rising government bond yields amid economic improvement and inflation expectations put a burden on the market. The international benchmark 10-year Treasury bond yield surpassed 1.62% during the intraday, rewriting its 1-year high.
However, Treasury bond yields reversed the intraday decline and lowered the level to the 1.5% level again. As interest rates fell, the stock price also turned upward.
“This was a welcome change for the oppressed job market,” said Charlie Ripley, senior investment strategist at Allianz Investment Management, in an interview with CNBC. I expected it.
The day before, Fed Chairman Jerome Powell presented an optimistic view on the job market, but predicted that the return to full employment would take a considerable amount of time.
At the same time, Chairman Powell said he would be concerned if the financial market overall contracts in connection with the recent surge in interest rates. The market, which expected Powell to reveal his clear stance on the recent rise in interest rates, was disappointed with his remarks the day before.
“It’s like a tug of war,” said Randy Frederick, vice president of trading at the Charles Schwab Financial Research Center, in an interview with Marketwatch. Said.
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Shima Sha, chief strategist at Principal Global Investors, said in a report that “a significant surprise of non-agricultural employment is not welcome in the bond market as the market is already fighting a steep rise in bond yields.”
The U.S. Senate begins debate on an additional $1.9 trillion worth of new coronavirus infection (Corona 19) support.
The share price of US oil company Chevron rose 4.15% after it announced that it would acquire 33925,000 shares of Noble Midstream Partners.
The share price of large retailer Costco fell 0.54% as it did not meet expectations for earnings in the second quarter of the fiscal year.
Technology stocks, which have recently weakened, have generally risen. Apple rose 1.07%, while Microsoft (MS) and Facebook rose 2.15% and 2.58%, respectively.
However, Tesla plunged 3.78%, continuing its decline for 4 consecutive weeks on a weekly basis.
Zoom video, which has been in the spotlight as’Zipkokju’ in the pandemic (global pandemic), fell 1.65%.
The Chicago Options Exchange (CBOE) Volatility Index (VIX), referred to as the’Wall Street Fear Index’, fell 13.23% from the previous day to 24.79.