![[뉴욕증시] Honjo amid resumption of rising interest rates… Dow 0.90%↑, Nasdaq 0.59%↓](https://www.blockmedia.co.kr/wp-content/uploads/2020/07/뉴욕증시-1.jpg "[뉴욕증시] Honjo amid resumption of rising interest rates… Dow 0.90%↑, Nasdaq 0.59%↓")
On the New York Stock Exchange (NYSE), the Dow index closed at 33,2778.64, up 298.05 points (0.90%) from the previous trading day.
However, the Nasdaq Composite Index, centered on technology stocks, fell 78.81 points (0.59%) to 13,319.86.
On a weekly basis, the S&P 500 rose 2.64% and the Dow rose 4.07%. The NASDAQ index also rose 3.09%.
The financial market once again paid attention to the rise in government bond yields. The international benchmark 10-year Treasury bond yield surged over 10.9bp (1bp=0.01% points) from the previous day to 1.634%, a record high since February of last year.
Treasury bond yields have recently risen on expectations of inflation (increased inflation). U.S. President Joe Biden signed a $1.9 trillion worth of new coronavirus infection (Corona 19) support the day before. Accordingly, as early as the weekend, additional subsidies of up to $1,400 per person will start.
However, the Nasdaq Composite Index, centered on technology stocks, fell 78.81 points (0.59%) to 13,319.86.
On a weekly basis, the S&P 500 rose 2.64% and the Dow rose 4.07%. The NASDAQ index also rose 3.09%.
The financial market once again paid attention to the rise in government bond yields. The international benchmark 10-year Treasury bond yield surged over 10.9bp (1bp=0.01% points) from the previous day to 1.634%, a record high since February of last year.
Treasury bond yields have recently risen on expectations of inflation (increased inflation). U.S. President Joe Biden signed a $1.9 trillion worth of new coronavirus infection (Corona 19) support the day before. Accordingly, as early as the weekend, additional subsidies of up to $1,400 per person will start.
President Biden plans to make the Corona 19 vaccine available to Americans of all ages by May. Increased vaccination and additional stimulus measures can increase inflation.
The rise in government bond yields led to weakening of technology stocks, which have a high valuation burden. Tesla’s share price fell 0.84% on the same day, and Netflix also weakened 0.96%. Apple also fell 0.76%.
“Higher interest rates and less dominant central banks are being cited as the biggest threat to risky assets,” said Ralph Prouser, interest rate strategist at Bank of America (BofA), in the report.
Stanhope Capital’s Chief Investment Officer Jonathan Bell told Reuters that “the risk of rising inflation has increased considerably,” referring to the expected increase in demand as the economy reopens slowly through stimulus measures and money supply.
Economic indicators were good. The March Consumer Confidence Index released by the University of Michigan was 83.0, the highest for a year. Inflation expectations for one year fell from 3.3% last month to 3.1%, and inflation expectations for 5-10 years remained at 2.7%.
In February, the producer price index (PPI) rose 0.5% from the previous month, narrowing the increase from 1.3% in January. The year-on-year increase rate was 2.8%, the highest since October 2018.
Coupang, which debuted on the New York Stock Exchange the day before, fell 1.75% on the day. The stock price of fashion company L Brands soared 9.02% on improved earnings outlook.
The share price of NovaVax, a pharmaceutical company, jumped 8.07% as the high infection prevention effect of the COVID-19 vaccine candidate was known. Boeing rose 6.77% on the same day.
The Chicago Options Exchange (CBOE) Volatility Index (VIX), referred to as the’Wall Street Fear Index’, fell 5.66% to 20.67.