Concerns about rising government bond yields and worsening unemployment indicators
Tesla 1% decline… Sun power plummeted to 16%
Photo = REUTERS
The three indices fell all at once in the New York Stock Market. This is due to the rise in US Treasury yields due to the possibility of inflation (inflation) resulting from massive stimulus measures. As concerns over rising interest rates are growing, technology stocks and growth stocks are losing track. Electric vehicle solar-related stocks all showed weakness.
Unemployment indicator worsens amid rising US Treasury rates
On the 18th (local time) on the New York Stock Exchange (NYSE), the Dow Jones 30 Industrial Average fell 119.68 points (0.38%) from the previous trading day to 31,493.34. The Standard & Poor’s (S&P) 500 index fell 17.36 points (0.44%) to 3913.97 over the same period, while the Nasdaq index fell 100.14 points (0.72%) to 13,865.36.
Treasury yields have recently risen with the prospect that massive stimulus measures promoted by the US government can lead to inflation. The 10-year Treasury bond yield rose to around 1.3%. However, on this day, it fell slightly.
Inflation is also fueling concerns over inflation. The US import price for January, which was announced on this day, rose 1.4% from the previous month, recording the largest increase in nine years since March 2012. The January producer price, announced the previous day, recorded the highest monthly increase rate since the 2009 indicators were compiled.
The unemployment situation worsened. The Ministry of Labor announced last week that the number of unemployment insurance claims reached 861,000 (seasonally adjusted), an increase of 13,000 from the previous week. It exceeded the market estimate of 773,000 people. The recovery of the job market is still not solid.
Seo Sang-young, a researcher at Kiwoom Securities, said, “On this day, concerns over inflationary pressures and the slow recovery of the job market have been highlighted.” I stimulated it,” he explained.
Photo = EPA
Rising interest rates, burden on technology stocks… Apple decline
Apple fell. Apple closed the deal at $129.71, down $1.13 (0.86%) per share from the previous day. It is explained that the sale was poured out as inflation concerns continued. In addition, the fact that Epic Games filed an independent interest rate lawsuit in Europe was also a burden.
Tesla stock prices also fell. Tesla recorded $787.38, down $10.77 (1.35%) per share from the previous day. Since the news that it has invested in Bitcoin, hedge funds have been on sale, and the news of the Model 3 price cut drove down the stock price. The weakening of the Chinese electric vehicle industry, such as Nio (-5.04%), also contributed to the share price decline.
Stocks related to solar power also fell at once. Sunpower closed the deal at $36.33, a sharp drop of $7.88 (16.69%) per share during the same period. By announcing poor results. As the sun power fell, other solar companies such as First Solar (-4.65%) also showed a decline.
Wal-Mart was also sluggish. Wal-Mart closed at $137.66, down $9.44 per share (6.48%). It announced 4Q net profit, which was weaker than expected, and forecasts that it will grow 8.6% this year, but will only increase in the early single digits next year.
On the other hand, cloud communication platform company Twillio soared. Twillio posted $443.49, up $31.84 per share (7.73%) from the previous day. In the fourth quarter of last year, Twillo announced that it generated 4 cents of adjusted earnings per share (EPS) and sales of $548.1 million.
Micron also jumped over 2%. This is because Citigroup predicts that DRAM prices will be better than expected. Also, the price is expected to rise this year due to the supply-demand imbalance.
Song-ryul Lee, reporter of Hankyung.com [email protected]