[뉴욕증시] Powell market appease and rising expectations of stimulus… Dow 1.35%↑

[뉴욕=뉴스핌] Correspondent Kim Min-jung = Major indices in the US New York stock market closed higher on the 24th (local time). Expectations for the US Congress to add $1.9 trillion in stimulus and the subsequent market appreciation of Fed Chair Jerome Powell supported risky investment sentiment.

The Dow Jones 30 Industrial Average on the New York Stock Exchange (NYSE) closed at 31961.86, up 424.51 points (1.35%) from the previous trading day. Recorded. The NASDAQ composite index, centered on technology stocks, rose 132.77 points (0.99%) to 13,597.97.

Boeing, Goldman Sachs, Chevron, Caterpillar, etc., with anticipation for additional support for the new coronavirus infection (Corona 19) worth $1.9 trillion led by U.S. President Joe Biden and the prospect of economic improvement following increased vaccination. On this day, it led the stock strength.

New York Stock Exchange [사진=로이터 뉴스핌]

House Speaker Nancy Pelosi (Democratic California) raised expectations for the stimulus package by stating that the House of Representatives will move with the goal of passing additional stimulus bills on the 25th.

Powell attended the House Financial Committee’s monetary policy hearing on the same day and said that it could take three years or more for the Fed to achieve its inflation target, alleviating Wall Street’s fear of premature asset purchase cuts (tapering).

Most of the tech stocks, whose valuation burdens emerged amid rising government bond yields, were also weak. The international benchmark 10-year Treasury bond yield surpassed 1.40% on that day, the highest since February last year. Apple fell 0.41%, while Amazon and Facebook fell 1.09% and 0.58%, respectively.

Cherry Lane Investment’s partner Rick Mekler told Reuters that “Investors trying to keep profits from growth stocks and investors looking to retreat to re-entry have normal concerns.” “If they all enter the market and the market falls, buyers will appear and prices “When this rises, the seller appears.”

Tesla’s share price was raised by the low-priced buying trend and the disclosure of the purchase of Tesla by Chief Executive Officer Kathy Wood of Arc Investment Management (CEO). Tesla surged 6.18% on the day.

Gamestop’s stock price surged 103.91% in the second half of the market, which plunged amid the reddit investor frenzy last month.

Some experts expect the low-priced buying trend to continue flowing even if the stock price goes down amid rising interest rates.

Morgan Stanley’s Christopher Methyl Quant and Derivative Strategist said in the report that “the volatility will continue and interest rates will continue to rise, which will be a risk to the sector”, but “under current conditions, a stock market downturn means buying.” did.

Chris Zacharelli, Chief Investment Officer of the Independent Advisor Alliance, told Bloomberg News that “the market is debating interest rates, inflation and economic growth. This is a discussion of the growth vs. value investment style that emerged last year, and as of 2021, It was a more mixed situation.”

Economic indicators were good. New home sales for January, announced by the US Department of Commerce, were 923,000, up 4.3 percent from a month ago on an annual basis. This exceeded the expectation of 855,000 economic experts compiled by Reuters.

The volatility index (VIX) of the Chicago Options Exchange (CBOE), which is called the’Wall Street Fear Index’, was calculated to be 21.32, down 7.75% from the previous day.

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