Input 2021.02.25 08:02 | Revision 2021.02.25 08:54
On the 24th (local time), the US New York Stock Market slumped in the mouth of Jerome Powell, chairman of the Federal Reserve System (Fed). Chairman Powell dismissed concerns about inflation, saying it would take three years to reach the Fed’s inflation target by attending the House Financial Services Commission that day.
The Standard & Poor’s (S&P) 500 index rose 44.06 points (1.14%) to 3,925.43, while the technology-oriented NASDAQ index rose 132.77 points (0.99%) to 13,597.97.
Major indices, which fell sharply at the news that the 10-year Treasury bond rate at the beginning of the market soared to 1.4%, the highest level since February of last year, rebounded sharply shortly after Powell’s remarks at a parliamentary hearing.
The New York Stock Exchange almost made up for the decline the day before, drawing a steep downward curve when Powell made a “pigeon” statement at a Senate hearing that he would maintain zero interest rates for a long time.
On the day, Boeing surged 8.1% and Chevron surged 3.7%, raising the momentum of stocks sensitive to the economic cycle. Financial stocks such as Goldman Sachs (3.6%) and Visa (3.5%) also rose sharply. Tesla, which had been adjusted sharply in recent years in conjunction with the bitcoin market price, succeeded in rebounding by 6.2%.
Chinese drone manufacturer Lee Hang Holdings, which fell due to negative reports from short sellers, rose 7.8% on the same day, but Churchill Capital IV, a company for acquisition of companies (SPAC and SPAC), confirmed to be merged with electric vehicle company Lucid Motors, plunged 18.5%, Heebi crossed.