NASDAQ 2.7%’slump’ deadline
10-year interest rate of 1.47% on growing expectations for economic normalization
Large technology-led’fall’ such as MS and alphabet
(Photo = Getty Image Bank)
Last night, the New York Stock Market declined due to the rise in government bond yields and the opening of sales centered on technology stocks.
On the 3rd (local time) on the New York Stock Exchange (NYSE), the Dow Jones 30 Industrial Average closed at 31,270.09, down 121.43 points (0.39%) from the battlefield. The Standard & Poor’s (S&P) 500 index also closed at 3,819.72, down 50.57 points (1.31%). On the other hand, the Nasdaq index, which is centered on technology stocks, plunged 361.04 points (2.7%) to 12,997.75.
The 10-year Treasury bond rate rose, approaching 1.5% at one time during the intraday, and traded at the 1.47% level by the close of the stock market. Considering the fact that it fell to the low 1.4% the previous day, it is a relatively large increase.
The reason for the rise in government bond yields is that President Joe Biden promised sufficient corona vaccine and fiscal stimulus for all adults by May, and expectations for an economic normalization spread. In addition, raising expectations for passing the Senate for an additional $1.9 trillion worth of stimulus was also a factor in the interest rate hike.
Kiwoom Securities researcher Seo Sang-young said, “The Central Bank (Fed) evaluated the risk of a surge in inflationary pressures through the Beige Book.” “The government bond yields continued to rise, emphasizing the still high inflation pressure.”
Large technology stocks were sluggish as the volatility of government bond interest rates increased. Adobe fell 3.89%, and Salesforce and Intuit also fell 3.50% and 3.25%, respectively.
Large technology stocks such as MS (-2.70%), Alphabet (-2.57%), Amazon (-2.89%), and Apple (-2.54%) also fell sharply. In addition, Tesla and Nio also fell 4.84% and 4.07%, respectively, as the issue of value burden when interest rates rose.
In addition, solar-related stocks such as First Solar (-5.18%) and Jinko Solar (-9.87%) and cannabis-related stocks such as Tiray (-2.36%) and Aurora Cannabis (-5.17%) also fell. Theme stocks such as Zoom Video (-8.17%), Viva System (-8.34%), and Dokyu Sign (-5.57%) and other software-related stocks with a high PER.
On the other hand, financial companies were strong in expectations of rising interest rates. The BOA rose 2.50%, and JPMorgan (1.93%) and Charles Swap (1.82%) also rose. The aviation sector such as Boeing (2.43%) and American Airlines (3.40%) and energy industry sectors such as Chevron (1.12%) and GE (3.54%) also rose in anticipation of an economic normalization.
In particular, Alcoa ended soaring 12.11%. This is the effect of Goldman Sachs’ raising its rating from Sell to Buy on the grounds of rising aluminum prices.
Eunbit Go, reporter Hankyung.com [email protected]