On the 23rd (US time) on the New York Stock Exchange (NYSE), the Dow Jones 30 Industrial Average fell 308.05 points (0.94%) from the battlefield to 32,423.15, and the Standard & Poor’s (S&P) 500 fell 30.07 points (0.76%) from the previous year. At 3910.52, the Nasdaq Index, which was centered on technology stocks, fell 149.85 points (1.12%) to 13227.70, respectively.
Jerome Powell, chairman of the Federal Reserve System (Fed), said in a testimony to Congress that he would continue to ease monetary policy.
CNBC reported that as of last weekend, new infections for COVID-19 have increased in 21 states in the United States. In particular, despite the smooth distribution of vaccines in the United States, concerns over the third epidemic of Corona 19 are growing as new infections increase.
New infections are rapidly increasing in Europe as well as the spread of the mutant virus. Accordingly, major countries such as Germany and France reinforced the blockade.
In this situation, controversy over AstraZeneca’s COVID-19 vaccine was raised again. The National Institute of Allergy and Infectious Diseases (NIAID) in the United States raised the possibility that outdated information was included in the clinical trial results of the AstraZeneca vaccine. Accordingly, AstraZeneca announced that it will release initial analysis data based on the latest data within 48 hours.
As concerns about the third coronavirus epidemic emerged, international oil prices, which rose in anticipation of economic normalization, plummeted. Western Texas Crude Oil (WTI) plunged more than 6% on the same day. It is the lowest since early February.
At the close of the stock market, the 10-year U.S. Treasury bond rate fell to 1.63%, but the stock market failed due to concerns over a setback in economic recovery.
Powell’s testimony to the House of Representatives about maintaining a easing monetary policy was likewise not driving the stock market. “The economic recovery is far from full, and the Fed will continue to provide necessary support,” said Powell. “The US government’s massive stimulus package will not increase inflation significantly.” In addition, the Fed also said that if inflationary pressures increase, there is a means to respond to them.
By stock on that day, Caterpillar, a heavy equipment manufacturer, fell by about 3.4%. However, Coupang ended at $46.00, an increase of $1.14 (2.54%) compared to the previous day.
By industry, industrial stocks 1.76% and financial stocks 1.41%. Technology stocks fell 0.64% each.
According to Fedwatch of the Chicago Merchandise Exchange (CME), the FF interest rate futures market showed a potential rate hike of 2.2% based on 25bps in September. On the Chicago Options Exchange (CBOE), the volatility index (VIX) recorded 20.3, up 7.52% from the previous trading day.
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