[뉴욕증시 마감] ‘FOMC Waiting Tax’ Nasdaq alone 0.09%↑… WTI, 3 days in a row ↓

On the 16th (hereafter local time), the New York Stock Market ended in mixed tax ahead of the results of the US Federal Open Market Committee (FOMC) meeting that began on this day.

On the afternoon of the 17th, the FOMC announces the monetary policy such as the base interest rate, economic growth rate forecast, and interest rate forecast. After the announcement of the FOMC meeting, a press conference is scheduled for Jerome Powell, chairman of the Federal Open System (Fed). At the press conference of Chairman Powell, questions about the monetary easing policy, such as the size and speed of bond purchases to stabilize the rise in government bond yields that have recently pressured the market, are expected to rise.

On this day, the Dow Jones 30 Industrial Average on the New York Stock Exchange (NYSE) recorded 32,825.95, down 127.51 points (0.39%) from the previous trading day. The Standard & Poor’s (S&P) 500 index closed the deal at 3962.71, missing 6.23 points (0.16%). On the other hand, the Nasdaq index, which was centered on technology stocks, jumped 11.86 points (0.09%) to close at 11,3471.57. The Russell 2000 Index fell 39.64 points (1.68%) compared to the previous day to 2320.53.

The 11 sectors of the S&P 500 index fell all at once, excluding consumer staples (0.07%), technology (0.79%), communication services (0.93%), and utilities (0.1%).

The energy sector plunged 2.83% as international oil prices fell in the aftermath of the suspension of vaccines for AstraZeneca (AZ) novel coronavirus infection (Corona 19) in major European countries such as Germany, Spain and Italy. In addition, △ consumer discretionary goods (-0.87%) △ finance (-1.13%) △ healthcare (-0.04%) △ industry (-1.44%) △ materials (-0.87%) △ real estate (-0.02%) also fell.

Reuters said, “Ahead of the announcement of the FOMC results, energy and industrial stocks were affected.” “The Dow and S&P 500 indexes lost their direction and shaken without any special materials after recording all-time highs on Monday (15th).”

◆’FOMC wait and see tax’ ends mixed … US Treasury yield 1.627%

On this day, the New York Stock Exchange paid attention to the results of the Fed’s FOMC regular meeting. Key economic indicators such as US retail sales, industrial production, and import prices were released, but the market focused more on the FOMC results.

The U.S. Department of Commerce said retail sales in February fell 3.0% from the previous month. This is a significant decrease from the 0.4% decline in the forecast compiled by the Wall Street Journal (WSJ). Since it hit the United States such as Texas last month, it seems that the cold wave and heavy snow have adversely affected consumption. However, in January, retail sales were revised up from a 5.3% increase compared to the previous month to a 7.6% increase.

Industrial production in February, announced by the Fed, fell 2.2% (seasonal adjustment) from the previous month, falling below the market estimate of 0.3%. The Fed reported that this was also due to abnormal climates such as cold waves.

The February import price, announced by the Ministry of Labor, rose 13% from the previous month, exceeding the forecast of 1.0%. In January, corporate inventory increased 0.3% from the previous month to $1,982.4 billion (about 2241 trillion 103.2 billion won), consistent with the market forecast.

The housing market index for March released by the National Housing Construction Industry Association (NAHB) and Wells Fargo recorded 82. This is less than the previous month’s 84 and the market forecast of 83.

“FOMC has long been one of the most important meetings on the market,” said Tom Martin, senior portfolio manager at Globalt Investments. (This meeting) is the first (the Fed’s) thing since concerns about rising inflation and inflation (inflation) emerged,” he said about the background of the mayor’s attention to the results of the FOMC meeting.

CNBC, a US economic media outlet, pointed out that “the Dow and S&P 500 are still close to their all-time highs, but there is growing concern among traders that (bonds) interest rates will continue to rise, preventing stocks from recovering.”

As of 4:39 pm on the same day, the US 10-year Treasury bond yield (bond yield) has risen by 0.020bp (1.23%) to 1.627%. According to CNBC, 10-year Treasury bond yields started to surpass 1.62% in the afternoon trading, causing stock prices in major sectors of the market to plunge to a trough.

“The distribution of the COVID-19 vaccine is bringing us closer to a full economic resumption,” said LPL Financial strategists. This will be the most important factor in evaluating the economic growth outlook for 2021,” he said, but also predicted that “interest rates will be a threat to the market.”

◆Europe, rising in the FOMC pipe network… “Possibilities of a 10% plunge in oil prices”

European stocks rose on the back of strong earnings by companies. However, the rise was not large due to the alertness ahead of the results of the FOMC meeting, which will affect the global financial markets. In addition, the news of the cessation of AZ Corona 19 vaccination seems to have limited the investment sentiment of market participants.

The euro Stoxx50 index, a pan-European index, ended trading at 3850.96, up 21.12 points (0.55%) compared to the previous trading day. The London stock market’s FTSE 100 index rose 53.91 points (0.80%) to 6803.61 compared to the previous day, while the Frankfurt stock market’s DAX30 index jumped 96.16 points (0.66%) to 10,4557.58. France’s Parisian stock market’s CAC40 index rose 19.46 points (0.32%) to 6055.43.

The cessation of AZ Corona 19 vaccination also affected international oil prices.

On the New York Commercial Exchange (NYMEX), April’s Western Texas crude oil (WTI) recorded 64.95 dollars, down 0.44 dollars (0.67%) per barrel compared to the previous trading day. The May Brent oil on the London ICE futures exchange in London, UK, is trading in a subsidiary sector at $68.55 per barrel, the same as the previous day’s closing price at 5:15 pm.

“Abortion of AZ vaccination in European countries could reduce demand for crude oil in the short term,” said Edward Moya Oanda, a researcher. “If the short-term risk (for COVID-19) from mutant viruses continues to expand, oil prices will fall by 10%. It may be,” he warned.

The prospect of an increase in US weekly crude oil stocks also pressed oil prices. Reuters reported that experts expect crude oil inventories to increase unexpectedly last week, scheduled for release by the US Energy Information Administration (EIA) on the 17th.

Weekly crude oil inventories, announced by the EIA last week, surged 13.8 million barrels in the aftermath of an abnormal cold and heavy snowfall in the United States.

Gold prices rose as the strength of the US dollar softened. On the New York Merchandise Exchange (COMEX), the price of April gold rose $1.70 (0.1%) from the previous trading day to $1730.90 per ounce. This is the highest since the last two days.