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In the New York Stock Market, major indices showed mixed rates in consolidation. As the US Treasury rate rises, the pressure to increase interest rates continues. There is also a prospect that a massive stimulus package will accelerate the rise in inflation.
On the 19th (local time) on the New York Stock Exchange (NYSE), the Dow Jones 30 Industrial Average increased 0.98 points (0.0%) from the previous length to 31,494.32, and the Nasdaq index increased 9.11 points (0.07%) to 13,874.46. The And Poor’s (S&P) 500 index recorded 3,906.71, down 7.26 points (0.19%) from the battlefield.
As a result, the Dow rose about 0.1% this week. However, the S&P 500 fell about 0.7%, while the Nasdaq fell 1.6%. On a weekly basis, the S&P500 and Nasdaq fell in three weeks.
At the beginning of the market, the leading indexes showed strong gains, but the US interest rate trends, stimulus measures, and major economic indicators were shaken. As the pressure to increase interest rates increased, the trend turned downward.
US Treasury Secretary Janet Yellen said, “It’s very important to push forward with a big package to relieve (American) suffering.” The need for large-scale stimulus measures was once again emphasized.
In a letter to Senate Democrats, Democratic Senate Chuck Schumer said in a letter to Senate Democrats, “we will allow a $1.9 trillion in fiscal stimulus bill to be signed before March 14”. Demonstrated willingness to deal with stimulus measures.
Economic indicators were generally good. According to information provider IHS Markit, the preliminary value (seasonally adjusted value) of the service industry purchasing managers’ index (PMI) in February rose from 58.3 to 58.9 from last month’s fixed value. It exceeded the market forecast of 58.0 compiled by The Wall Street Journal.
The rise in interest rates pressed the stock market. On this day, the 10-year Treasury bond yield reached 1.363% during the intraday. It has hit a record high in the last year. The 30-year product also showed weakness. This week alone, 10-year and 30-year interest rates have risen by almost 14bp (1bp = 0.01% point).
Companies reported good results. Share prices of business cycle stocks rose. Materials stocks 1.84% and energy stocks 1.64% were strong. Semiconductor equipment maker Applied Materials rose 5.3%, exceeding market expectations. Deer & Co, an agricultural machinery maker, fell by 9.9% and Caterpillar, a heavy equipment maker, fell by 5.0%.
Most large tech stocks have fallen. Amazon plunged 2.3% and Facebook plunged 2.9%. Apple rose 0.12%, but Google’s parent companies Alphabet (-0.8%), Netflix (-1.4%), and Microsoft (-1.1%) fell.
Hankyung.com reporter Kim Hana [email protected]