New York Stock Market Starts Mixed Tax on US Treasury Rate Rise

Input 2021.03.18 23:28

Major indexes of the New York Stock Market started mixed on the 18th, as the US Treasury bond rate soared again.

As of 9:56 a.m. (East time), the Dow Jones 30 Industrial Average on the New York Stock Exchange (NYSE) traded at 33,043.49, up 28.12 points (0.09%) from the battlefield. The Standard & Poor’s (S&P) 500 index fell 21.75 points (0.55%) from the battlefield to 3,952.37, while the technology stock-oriented NASDAQ index fell 197.94 points (1.46%) to 13,327.26.

The market is watching key economic indicators such as US interest rate trends and unemployment. As the Federal Reserve (Fed and Fed) reaffirmed its long-term low interest rate policy, the rise in government bond yields, which seemed to soften, again sharpened. The 10-year U.S. Treasury bond yield exceeded 1.75% at one point in the beginning of the market. This is a level that has surged more than 0.1% point (p) compared to the battlefield. Despite the Fed’s repeated easing remarks, market concerns over inflation have not been resolved.

The fact that the Fed raised its growth rate and inflation forecasts this year is a factor that stimulates anxiety over the tightening of monetary policy, which is faster than expected. If inflation rises rapidly, the Fed is expected to eventually withdraw.

As interest rates jumped sharply, stock market anxiety increased, centered on technology stocks. Early in the market, Apple’s stock price fell more than 2%, while Tesla fell more than 3.6%.

US economic indicators are mixed. The Ministry of Labor announced last week that the number of unemployment insurance claims increased by 45,000 from the previous week to 770,000 (seasonal adjustment). It exceeded the market estimate of 700,000 people compiled by The Wall Street Journal. On the other hand, the manufacturing index for March, released by the Federal Reserve Bank of Philadelphia, soared to the highest level for about half a century at 51.8. It is the highest since 1973. The market estimate of 22.0 also exceeded the market estimate significantly.

The Philadelphia Fed Index has also stimulated concerns over inflation. The March price and payment index soared to 75.9 from 54.4 last month. It is the highest since 1980. Yeon-eun explained that companies are constantly under pressure to increase production costs.

Experts in New York’s stock market have diagnosed that although interest rates may continue to be unstable, market volatility may not be large as demand for risky assets is maintained.