[뉴욕증시]Soaring after a plunge… Stock markets with increased volatility due to government bond yields

(Photo = AP/Yonhap News)

[뉴욕=이데일리 김정남 특파원] The New York stock market surged. Due to the flow of government bond yields, there was great volatility, such as a sharp drop in the beginning of the market and then soaring again during the week.

According to Market Point on the 5th (local time), the Dow Jones 30 Industrial Average on the US New York Stock Exchange closed at 31,496.30, up 1.85% from the previous trading day. The Standard & Poor’s (S&P) 500 index closed at 3841.94, up 1.95%. The NASDAQ index, which is centered on technology stocks, jumped 1.55% to 12,920.15.

The stock market was uneasy even at the beginning of the market. The three indexes plunged at once as the 10-year US Treasury bond rate soared to 1.626% during the intraday.

The strong employment indicators that came out before the opening weren’t working hard at the beginning of the market. According to the Ministry of Labor, the number of non-agricultural jobs increased by 379,000 last month. The largest increase since October last year. Dow Jones’ expert forecast (210,000 increase) also exceeded significantly.

Most of the job growth last month came from the leisure and hospitality industry (355,000 increase). It is the industry that has been hit hardest by Corona 19. It was found that it employed 286,000 more people in restaurants and bars alone. It is possible to interpret that if the corona19 vaccine spreads across the United States and the number of confirmed cases gradually decreases, jobs will gradually recover if each state reopens the economy. The unemployment rate was 6.2%, down 0.1 percentage point from the previous month (6.3%).

However, as the intraday government bond rate hike eased, the green light material for the job market was highlighted, and the three indexes rebounded rapidly. Intraday volatility was that much. In the case of the Dow Index, the difference between the intraday highs and the lows exceeded 800 points.

It was also mentioned on this day that the Federal Reserve System (Fed) would not directly intervene in the increase in government bond yields. St. Louis Fed President James Bourd said, “The need to become more dove (we prefer monetary easing) is not right now.” Nevertheless, the government bond market was not shaken as much as the day before. The overall stock market moved in line with the government bond yield.

The Chicago Options Exchange Volatility Index (VIX), also known as the Wall Street Fear Index, fell 13.69% to 24.66.

Stock markets in major European countries fell all at once. The UK London Stock Exchange’s FTSE 100 index closed at 6630.52, down 0.31% from the previous trading day. Germany’s Frankfurt stock market’s DAX 30 index fell 0.97%, while the French Parisian stock market’s CAC 40 index fell 0.82%.