[뉴욕증시] Prolonged SLR easing, mixed with misappropriation and slow rise in interest rates

[뉴욕=뉴스핌] Correspondent Kim Min-jung = Major indexes in the US New York stock market closed at mixed prices on the 19th (local time). Financial stocks were weak due to the lack of extension of the supplementary leverage ratio (SLR) mitigation measures of the US Federal Reserve System (Fed), but the stock market was mixed by index as some technology stocks recovered.

On the New York Stock Exchange (NYSE), the Dow Jones 30 Industrial Average ended at 32,627.97, down 234.33 points (0.71%) from the previous day, while the Standard & Poor’s (S&P) 500 index, mainly for large caps, fell 2.36 points (0.06%) to 3913.10. It was counted.

The NASDAQ composite index, centered on technology stocks, rose 99.07 points (0.76%) to 13,215.24.

On a weekly basis, the Dow index fell 0.46%, while the S&P 500 and Nasdaq indexes fell 0.77% and 0.79%, respectively.

The Fed announced on the 31st that it will end SLR mitigation measures as scheduled. However, the Fed plans to review the regulations to ensure that the SLR works reasonably.

The SLR requires banks to hold more than a certain level of equity capital in the central bank in order to purchase additional assets such as government bonds. In April of last year, the Fed excluded government bonds from this measure.

Wall Street’s expectations for the Fed to extend SLR easing measures so far showed disappointment. Bank of America (BofA), Citi, Wells Fargo, and other banking stocks all showed weakness.

“Bank stocks have risen considerably this year, and this news is a catalyst for profit-taking,” said Art Hogan, senior market strategist at National Security. This could be different.”

“It was disappointing to investors that the Fed did not extend it (SLR mitigation measures),” said Jimmy Chang, chief investment officer at Rockefeller Global Family Office, in an interview with CNBC. There were many expectations that the measures would be extended.”

However, government bond yields, which had been rising, turned to a slight decline, limiting market uncertainty. As interest rates ceased, technology stocks that had weakened the valuation burden showed an uptrend.

Facebook soared 4.12% and Tesla rose 0.26%. However, Apple and Microsoft (MS) showed slight weakness.

The stock market was linked to inflation expectations this week and the resulting movement in government bond yields. The Fed maintained the base interest rate and asset purchase scale after a regular meeting of the Federal Open Market Committee (FOMC) on the 17th. However, the Fed raised its growth rate and inflation expectations relatively largely.

The 10-year Treasury bond yield exceeded 1.75%, showing a sense of caution against inflation. However, on this day, the 10-year interest rate fell slightly.

“What we need to watch out for is the steady rise in inflation expectations, which could put 10-year Treasury yields out of control,” said David Donabedian, CIO of CIBC Private Wealth Management, told Bloomberg.

The Chicago Options Exchange (CBOE) Volatility Index (VIX), referred to as the’Wall Street Fear Index’, recorded 20.72, down 3.99% from the previous day.

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