Major indices in the New York Stock Market started to rise sharply, led by technology stocks, as the US Treasury bond rate fell on the 9th.
As of 9:55 a.m. Eastern Time, the Dow Jones 30 Industrial Average on the New York Stock Exchange (NYSE) traded at 31,971.43, up 168.99 points (0.53%) from the battlefield.
The Standard & Poor’s (S&P) 500 index rose 55.15 points (1.44%) from the battlefield to 3,876.50, while the technology stock-oriented NASDAQ index soared 377.19 points (2.99%) to 12,986.35.
The market is watching the trends in US Treasury yields and new stimulus measures in the US.
The decline in US Treasury yields alleviated stock market anxiety.
The 10-year US Treasury bond rate fell to the mid-1.5% range at the beginning of the day from 1.6% on the previous day.
As interest rates have risen sharply in recent years, it can be interpreted that expectations that demand will be sound in the government bond bidding conducted by the US Treasury Department are at play.
The Ministry of Finance is planning to bid for a 3-year Treasury bond worth $58 billion on that day.
The next day, the bidding for government bonds this week, including 10-year water, will follow.
Amid high expectations for a rapid recovery in the economy, interest rates are also showing resistance around 1.6% on a 10-year basis, stabilizing investment sentiment in the stock market.
Stocks that are sensitive to economic cycles have maintained steady strength amidst the recent unrest, and technology stocks, which were recently sluggish, rebounded sharply on this day.
Apple’s stock price is rising by more than 3% at the beginning of the market, and Tesla is soaring by more than 8%.
The imminent final settlement of the US$1.9 trillion stimulus package is also a factor supporting investor sentiment.
The House of Representatives plans to pass a stimulus bill passed by the Senate over the weekend as early as the next day.
In the House of Representatives, the Democratic Party has a clear advantage, so there are no obstacles to passing the bill.
The economic indicators released on this day were mixed.
The National Self-Employment Federation (NFIB) announced that the February small business optimism index rose to 95.8, from 95.0 last month.
It is an increase in 4 months.
However, it was below 96.5 degrees, experts surveyed by the Wall Street Journal.
New York stock market experts have diagnosed that the rise in US Treasury yields could be mitigated.
Hani Redha, portfolio manager at Finebridge Investments, said, “We believe that a large portion of the interest rate movement has already been carried out. At this level, interest rates can stabilize as additional bond buying forces inflow.”
Stock markets in major European countries are also strong.
The pan-European index Stoxx 600 rose 0.65%.
International oil prices fell.
The price of Western Texas crude oil (WTI) for April moved to $64.65, down 0.6% from the previous trading day, and Brent crude, down 0.22% to $68.10.
According to Fedwatch of the Chicago Merchandise Exchange (CME), the Federal Fund (FF) interest rate futures market reflected the possibility of a 25bp base rate hike in September by 6.8%.
/yunhap news