[뉴욕증시 마감] Long-term Treasury yields surge, Nasdaq 3.02%↓… Oil prices plunged 7.01%

On the 18th (hereinafter referred to as local time), the three indexes of the New York Stock Market fell all at once.

The synergy effect from the results of the Federal Open Market Committee (FOMC) regular meeting the day before disappeared within one day. After the Federal Reserve (Fed and Fed) raised its US economic growth forecast to 6.5% this year and said it would tolerate a 2% increase in inflation (inflation) for the time being, the U.S. long-term Treasury bond rate soared at a steep pace. It worked as bad news.

On this day, the Dow Jones 30 Industrial Average on the New York Stock Exchange (NYSE) ended at 32,862.30, down 153.07 points (0.46%) from the previous day. The Dow surpassed the 33,000 mark for the first time in history due to the Fed’s freezing of the standard interest rate the day before. However, as the rising US Treasury bond yields pressed the market, the Dow gave the 33,000 mark in one day.

The Standard & Poor’s (S&P) 500 index closed at 3915.46, down 58.66 points (1.48%). The Nasdaq index, centered on technology stocks, has plummeted. The NASDAQ index recorded 13,116.17, a sharp decline of 409.03 points (3.02%) compared to the previous day. Apple, Amazon, and Netflix all fell more than 3%, while Tesla fell 6.95%.

The 11 sectors of the S&P500 index fell all at once, excluding the financial (0.56%) sector. The energy sector recorded a decline of 4.68% due to the crash of international oil prices. Others △ Discretionary consumer goods (-2.6%) △ Essential consumer goods (-0.47%) △ Health care (-0.19%) △ Industry (-0.05%) △ Industrial raw materials (-0.54%) △ Real estate (-0.74%) △ Technology ( -2.85%) △Communication services (-1.96%) △Utilities (-0.35%) also showed a decline.

CNBC, an economic media outlet in the United States, said, “Concerns about valuation of stocks arising from the surge in bond yields increased, and the index crashed as the sales process centered on technology (growth) stocks continued.”

As of 4:59 pm on that day, the US 10-year Treasury Bond yield (bond yield) has soared 4.20% to 1.170%.

◆ US 10-year Treasury bond yields surpassed 1.75% during intraday…

Fed Chair Jerome Powell’s “pigeon wave” remarks disappeared within a day. Chairman Powell reiterated that the current inflation phenomenon the day before was a’temporary phenomenon caused by the base effect’ and that there is no need to be nervous, but the market did not trust it.

According to CNBC, interest rates on long-term US Treasury bonds rose all at once. In particular, the 10-year Treasury bond yield, which is a benchmark in the bond market, jumped 11bp during the week, exceeding 1.75%, reaching the highest level since January of last year. The 30-year Treasury bond rate also rose 6bp during the intraday, surpassing 2.5% for the first time since September 2018.

CNBC said, “Bond yields skyrocketed after the Fed expressed its willingness to allow inflation overshooting,” said CNBC. “The rise in (bonds) interest rates was a bad thing for growth (technical) stocks as it lowered expectations for future earnings,” said CNBC. Explained.

Craig Johnson, technology market strategist at the investment bank PiperJaffrey, said, “The risk of the rate of rising rates remains a major concern for the market.” “The growth stocks crashed due to headwinds caused by high interest rates.”

However, CNBC said, “The stock price of bank stocks has risen,” and “The outlook that the gap between short-term loan interest rates and long-term loan interest rates will widen, and that the bank’s interest rate income will expand, has raised the stock price of banking stocks.”

The employment indicators, which the Fed is paying more attention to than inflation, were sluggish.

The US Department of Labor said last week that the number of unemployment insurance claims increased by 45,000 from the previous week to 770,000 (seasonal adjustment). This is a number that greatly exceeds the market forecast of 700,000 people compiled by the Wall Street Journal (WSJ), and it is interpreted that the recovery of the job market has slowed.

The manufacturing index improved while the recovery of the employment index was put on hold. The manufacturing index for March released by the Federal Reserve Bank of Philadelphia (Yeon Eun) was 51.8, far exceeding the market estimate of 22.0, and soaring to the highest level since 1973.

◆’Five days in a row’ WTI plunges around 7%… Europe closes up

International oil prices have been the worst day since last September. Concerns about the third epidemic of the novel coronavirus infection (Corona 19) pressed the market, and the heightened conflict between the US and Russia also contributed to the decline.

On the New York Commercial Exchange (NYMEX), April’s Western Texas crude oil (WTI) plunged 5.15 dollars (7.97%) per barrel to 59.45 dollars compared to the previous trading day. It is the first time since the 4th that the WTI price has fallen below $60 a barrel. The May Brent crude oil on the London ICE futures exchange in England was $63.28 per barrel, missing $4.72 (6.9%).

Currently, Europe is trembling with anxiety about the third epidemic of Corona 19. When the European Medicines Agency (EMA) confirmed the safety of the AstraZeneca (AZ) Corona 19 vaccine, France and Germany resumed vaccination. However, concerns about the side effects of’thrombus formation’ remain, and the lack of vaccine supply and the lack of smooth vaccination is also an anxiety factor. France re-entered a one-month blockade due to concerns about the re-proliferation of Corona 19.

U.S. President Joe Biden and Russian President Vladimir Putin’s battle over the poisoning incident of Russian opposition activist Alexey Navalni also became a bad news for the crude oil market. This is due to concerns that Russia, a major oil producer, could lower oil prices through increased production of crude oil to retaliate against US shale companies.

President Biden replied “yes” to the question of whether Putin is viewed as a “killer” in an interview with the US broadcaster on ABC the day before. In response, President Putin set the day for President Biden in an interview with local social activists in Crimea, saying, “If you call others that way, you will be called so too.”

The international gold price ended at $1732.50 on the New York Merchandise Exchange on the same day as the April gold price rose by $5.40 (0.35%) from the previous trading day.

Meanwhile, the European stock market ended higher due to the FOMC’s freezing of the benchmark interest rate.

The Euro Stoxx50 index, a pan-European index, ended trading at 3867.54, up 17.80 points (0.46%) compared to the previous trading day. The London stock market’s FTSE100 index closed at 6779.68, up 17.01 points (0.25%) compared to the previous day. The DAX30 index of the German Frankfurt stock market jumped 178.91 points (1.23%) to 1475.52. France’s Parisian stock market’s CAC40 index closed at 6062.79, up 7.97 points (0.13%).