[상보] New York Stock Market Falls on Technology Stock Unrest NASDAQ 2.01%↓

In the New York Stock Market, the leading index fell on the 24th (local time) due to unrest in technology stocks.

On that day, the Dow Index closed at 32,2420.06, down 3.09 points (0.01%) from the battlefield on the New York Stock Exchange (NYSE). The S&P500 index fell 21.38 points (0.55%) from the previous length to 3889.14, while the technology stock-oriented NASDAQ index fell 265.81 points (2.01%) to 12,961.89, respectively.

On this day, concerns about the delay in economic recovery in Europe, facing the third epidemic of the novel coronavirus infection (Corona 19), declined somewhat, but the overall index was lowered as technology stock anxiety deepened. Information provider IHS Markit announced that the preliminary value of the Eurozone’s Manufacturing Purchasing Managers Index (PMI) for March reached 62.4. This is an increase from the previous month (57.9) and significantly exceeded the market forecast (57.6). This month, the service industry PMI also recorded 48.8, exceeding both the delivery record (45.7) and the market forecast (46.0).

As a result, the purchase of sensitive stocks that had been sold the day before due to concerns over the European economic outlook expanded. The Dow Index remained in the’plus zone’ most of the time during the week as the economic cycle was strong. At the beginning of the market, the’reflation’ trading pattern was produced, showing strong business cycle stocks and weak technology stocks. At one time during the week, it increased the rise to $364, but it has stagnated afterward. Increasing pressure to sell growth stocks such as technology stocks put a burden on the market price. Eventually, as the technology stocks became more and more intensifying, the Dow Index turned to a downtrend just before the end of the deal.

The spread of Corona 19 in Europe and the conflict between the US and China still acted as a burden on the stock market. As the third outbreak of the virus is in full swing, countries are taking steps to raise or extend the level of containment again. The Netherlands announced that it would extend the blockade by three weeks, and Norway also postponed the blockade mitigation plan, which was to be announced at the end of this month, and began strengthening control measures. Belgium also announced that it will strengthen the blockade, such as the closure of schools for four weeks and the prohibition of non-essential stores’ work for customers other than reserved customers.

The conflict between the United States and China is spreading through the conflict between Western countries and both camps, such as China and Russia. When the United States, the European Union (EU), the United Kingdom, and Canada recently announced that they would impose simultaneous sanctions on the human rights abuses in Xinjiang, China, China also responded with immediate retaliation, including sanctions by 10 European personnel and 4 groups. did. In addition, China and Russia are accelerating close contact with the US-centered Western society’s siege to China. The day before, China and Russia issued a joint statement targeting the United States.

Jerome Powell, chairman of the US Federal Reserve (Fed), attended the Senate Banking Committee today and said that he believes inflation is temporary and will not overheat for a long time. “In the long run, you can think that inflation is no more damaging to the dynamics,” he said. “Even if it doesn’t go as expected, the financial authorities have the means to deal with unwanted inflation, and they will use it.” He emphasized that “in the case of rising interest rates, it is not a big concern because there was order.”

Since then, the 10-year U.S. Treasury bond yield has fallen to the low 1.6% range. The 10-year U.S. Treasury bond yield has risen sharply, surpassing 1.7% last week, but this week has maintained a relatively stable trend, maintaining the 1.6% level. As a result, concerns about the sharp rise in interest rates have eased somewhat.

By industry, communication and technology stocks fell 1.66% and technology-led 1.21%, respectively. On the other hand, energy rose by 2.52%. This is because oil prices have risen sharply due to the aground accident of a large container ship on the Suez Canal, which is a key logistics hub in the world and a major crude oil transport route.

On the Chicago Options Exchange (CBOE), the volatility index (VIX) recorded 21.2, up 4.43% from the previous trading day.