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The New York stock market closed lower last night. This is due to a surge in government bond rates due to inflation concerns.
On the 18th (local time) on the New York Stock Exchange (NYSE), the Dow Jones 30 Industrial Average closed at 32,862.30, down 153.07 points (0.46%) from the previous day. The Standard & Poor’s (S&P) 500 index recorded 3,915.46, down 58.66 points (1.48%) from the previous day. The Nasdaq index, centered on technology stocks, ended at 13,116.17, down 409.03 points (3.02%).
This is interpreted as the impact of the 10-year Treasury bond rate (yield rate) soaring to the highest in 14 months. The 10-year U.S. Treasury bond rate soared 0.11% during the intraday, rising more than 1.75%. It is the highest since January of last year. The 30-year interest rate also exceeded 2.5% during the intraday, reaching the highest since August 2019.
This is interpreted as the impact of the market’s unresolved concerns over inflation. Earlier, the Central Bank (Fed) raised its growth rate and inflation forecast this year through the Federal Open Markets Commission (FOMC). The forecast for this year’s growth rate has been significantly raised from 4.2% to 6.5%, and the inflation rate is expected to exceed 2% within the year.
“It’s all about price expectations,” said Edward Park, chief investment officer at Brooks McDonald’s.
The indicators released on this day were mixed. The Ministry of Labor announced last month that the number of unemployment insurance claims increased by 45,000 from the previous week to 770,000 (seasonal adjustment). This is more than the estimated 700,000 people compiled by The Wall Street Journal.
The February leading index released by the conference board recorded 110.5, up 0.2% from the previous month. It was slightly below the market forecast of 0.3%.
On the other hand, the March manufacturing index released by the Federal Reserve Bank of Philadelphia was 51.8, the highest since 1973. This is a sharp rise from the market forecast (22.0).
On the Chicago Options Exchange (CBOE), the volatility index (VIX) recorded 21.58, up 12.22% from the previous day.
Eunbit Go, reporter Hankyung.com [email protected]
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