[뉴욕증시]The Dow S&P500’s record high in the US economic recovery

(Photo = AP/Yonhap News)

[이데일리 최정희 기자] The US Dow Jones 30 Industrial Average Index and the Standard & Poor’s 500 Index rose 1% to record highs. As the employment and service sentiment index improved significantly, confidence in the economic recovery was reflected in the stock market. Technology stocks such as Tesla and Google rose 4% as the US 10-year Treasury bond rate fell slightly from the 1.7% level.

According to Market Points on the 5th (local time), the Dow index on the New York Stock Exchange in the United States closed at 33,527.19 points, up 1.13%. The S&P 500 index closed at 4077.91, up 58.04 points, up 1.44%. The S&P 500 index is a record high for the second consecutive trading day. The NASDAQ index traded at 13,705.59, up 225.48 points and 1.67%.

The index rose because it confirmed that economic indicators will recover. The number of non-agricultural workers, announced on the 2nd (local time), increased 916,000 in March, reaching the highest level since August last year. The unemployment rate has fallen to 6%. The economists surveyed by Dow Jones were an increase of 675,000 people and a 6% unemployment rate. The number of employed people greatly exceeded the forecast, demonstrating a rapid recovery in the economy.

ISM’s March Non-Manufacturing Purchasing Managers Index (PMI) was 63.7, the highest level in history since the survey began. This figure greatly exceeds the expert estimate of 59.2 and 55.3 of the previous report, compiled by the Wall Street Journal (WSJ).

“It seems to be’Capital V’in the early stages of (economic recovery),” said Tony Dwyer, analyst at Canadian market research firm Canacode Genuity. Or the Federal Reserve (Fed and Fed) policy mistakes, or both, it seems unlikely yet.”

The US 10-year Treasury bond rate opened at 1.706% and rose to 1.745% during the day, but closed at 1.723%. After the closing of the market, at 5 pm, it fell to 1.707%.

A slight decline in government bond yields boosted large tech stocks. Tesla, which surged in car sales, rose by 4%, and Google also rose by 4%. Apple and Microsoft rose by 2%. Air stocks rose on the back of the economic recovery and rapid vaccination rate. Delta and United rose by 2%, respectively, while Carnival and Norwegian cruise lines rose by 4.7% and 7.2%, respectively. The weekly average number of vaccinations per day on the 3rd (local time) exceeded 3 million.

The stock market has been strong since the Joe Biden administration announced a $2.3 trillion worth of infrastructure investment. On the 1st, the S&P 500 index exceeded the 4000 line for the first time in history, and it hit a record high for two consecutive trading days. However, as the infrastructure investment plan contains a plan to increase the corporate tax rate to 28%, it is expected to take time to pass the parliament as it faces opposition from the Republican Party.

Senator Roy Brunt of the Missouri Republican Party said on the 4th (local time) that the infrastructure investment should be reduced to about $616 billion. Republican Senate Representative Mitch McConnell has also said that Biden’s investment plan will not be supported by the Republican Party.