[뉴욕증시 마감] US employment indicators rebound in 4 days… Oil price, $70 Ghana

On the 5th (hereafter local time), the New York stock market closed higher. The 10-year Treasury bond rate soared to 1.6% during the intraday due to the strong US employment index, but it fell back and forth, and the New York Stock Exchange rose in four trading days.

CNBC, an economic media outlet in the US, said, “As the rise in bond yields eased, the market rebounded when it turned from a sharp sell-off to a buy-in.”

On this day, the Dow Jones 30 Industrial Average on the New York Stock Exchange (NYSE) soared 572.16 points (1.85%) to 31,496.30 compared to the previous day. The Standard & Poor’s (S&P) 500 index rose 73.47 points (1.95%) to 3841.94, while the technology stock-oriented Nasdaq index rose 196.68 points (1.55%) to 12,920.15.

On a weekly basis, the Dow index rose 1.8% compared to the previous week, and the S&P 500 index rose 0.8%. However, the Nasdaq Index, which was strongly shaken by the rise in US Treasury yields, fell 2.1% and collapsed at the 13,000 mark.

This is the impact of the U.S. 10-year Treasury bond rate soaring to 1.62% immediately after the release of the employment indicator. However, after the interest rate fell back to the mid-1.5% range, the market was relieved and the index began to rebound.

Quincy Crosby’s chief market strategist at Prudential Financial said, “The decline in bond yields helped support the market rise. Started.”

Large technology stocks such as Apple and Microsoft (MS), which were sluggish in the aftermath of concerns about rising US Treasury yields, rose 1% and 2%, respectively. However, Tesla fell more than 3% that day, and $600 per share collapsed.

Tesla’s stock price has fallen below $600 in three months since December 4 last year. Tesla fell 11% this week alone, falling for the fourth consecutive week.

The 11 sectors of the S&P500 index rose all at once. In particular, the energy sector surged 3.87% due to the news of an oil production freeze by the Organization of the Petroleum Exporting Countries (OPEC), while expectations for an economic recovery emerged due to the strong US employment index.

Others △ Discretionary consumer goods (0.72%) △ Essential consumer goods (2.15%) △ Finance (1.91%) △ Healthcare (2.02%), industry (2.39%) △ Materials (2.35%) △ Real estate (1.15%) △ Technology (1.97%) %) △Communication service (2.37%) △Utility (1.59%) also showed an uptrend.

◆Market focuses on stabilization of Treasury yields… volatility still remains

As the U.S. employment index recorded unexpectedly strong performance, expectations for an economic recovery have risen even further. However, this led to a rise in US Treasury yields, which was rather bad for the market.

The U.S. Department of Labor announced in February that employment in the non-agricultural sector increased by 379,000. This is a figure that far exceeds the market forecast of 210,000 growth, compiled by the Wall Street Journal (WSJ). In January, employment was also raised from an increase of 49,000 to an increase of 166,000. The unemployment rate was also 6.2%, lower than the previous month’s 6.3% and the market forecast of 6.3%.

The number of employment in the leisure and hospitality sector, which was affected by the re-proliferation of the novel coronavirus infection (Corona 19), increased by more than 350,000, leading to a favorable employment index. The resumption of economic activities following the easing of the Corona 19 pandemic (a global pandemic) gave vitality to the job market.

However, the US Treasury bond rate soared to 1.62% shortly after the release of the employment indicator, strongly pressing the market.

According to Investing.com, the 10-year Treasury bond yield in the US on this day rose 1.72% to 1.577% compared to the previous day. The 10-year bond rate moved from the mid-1.5% range, but surged to the 1.6% level in an instant upon the news of the favorable employment index, and the stock market moved greatly by surprise. As the Treasury bond rate, which had jumped around 1.6%, fell back and moved back to the mid-1.5% level at the beginning of the market, the market was relieved and the employment index began to rebound.

Gregory Faranello Ameribet Securities, head of US interest rate trading, said, “Today’s employment indicators show that the economy could resume more broadly.” It was a good news for the credit market.”

Although the New York stock market ended higher on that day, it turned out that unstable volatility remains.

According to CNBC, the Dow index dropped 150 points during the intraday, and the S&P 500 index fell around 1% at the beginning of the market. In particular, the Nasdaq Index fell 2.6%, showing the largest daily average decline. In particular, the difference between the highs and lows of the Dow index exceeded 800 points.

Remarks continued that the Federal Reserve System (Fed and Fed) would not directly respond to rising interest rates.

St. Louis Federal Reserve Governor James Bourd told a radio broadcaster, “There is no need to worry about government bond rates because they are on the rise due to a much stronger economic outlook, and there is no need for policy action.” As a member of the central bank, I am always concerned about the disorderly transactions, but I don’t see them at the level of concern.”

◆Oil prices surged on economic recovery and production cuts, reaching $70

The crude oil market was full of good news. OPEC+’s extended production cuts and improved US employment indicators led to an increase in international oil prices.

On the New York Commercial Exchange (NYMEX) in the United States, April’s Western Texas crude oil (WTI) ended at $66.09, an increase of $2.26 (3.5%) per barrel compared to the previous day, exceeding the $66 per barrel level. WTI prices jumped 7.5% this week alone.

Brent oil on the ICE futures exchange in London, UK, soared to its highest price since May 2019. Brent oil in May rose by $2.62 (3.93%) per barrel to $69.36, reaching $70.

OPEC+ decided to keep the oil production in April at nearly the same level as it is today at the meeting the day before.

Earlier, the market feared that Saudi Arabia would withdraw its voluntary decision to cut production and that the production volume in April would increase by an average of 1.5 million barrels per day. However, oil prices are on high as Saudi Arabia decided to continue its voluntary cuts of 1 million barrels per day in April.

In this regard, Goldman Sachs predicted that Brent oil will jump to $75 per barrel in the first half of this year and reach $80 in the second half of this year. UBS predicted that in the second half of this year, Brent oil will rise to $75 per barrel and WTI will rise to $72.

The decline in gold prices continued. On the New York Merchandise Exchange (COMEX), the April gold price closed at $1698.20 per ounce, missing $2.50 (0.15%) compared to the previous day, breaking the $1700 mark.

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Meanwhile, the European stock market fell on the move in US Treasury yields.

The Euro Stoxx50 index, a pan-European index, closed the deal at 3669.54, down 35.31 points (0.95%) from the previous trading day. The London stock market’s FTSE100 index fell 20.36 points (0.31%) to 6630.52 compared to the previous day, and the German Frankfurt stock market DAX30 index fell 135.65 points (0.97%) to 13,920.69. France’s Parisian stock market’s CAC 40 index fell 48.00 points (0.82%) to 5782.65.