Photo = AP
In the New York Stock Exchange, major indexes soared to all-time highs during the intraday, but ended in a mixed trend after fluctuating as they watched the rise in US Treasury yields.
On the 16th (local time) on the New York Stock Exchange (NYSE), the Dow Jones 30 Industrial Average rose 64.35 points (0.20%) from the battlefield to 31,522.75. On the other hand, the Standard & Poor’s (S&P) 500 index fell 2.24 points (0.06%) from the battlefield to 3,932.59, while the technology stock Nasdaq index fell 47.97 points (0.34%) to 14,047.50.
The market started on an uptrend thanks to the Joe Biden administration’s expenditures for economic stimulus and the expansion of vaccine distribution for the novel coronavirus infection (Corona 19). The three indexes all recorded all-time highs while helping to increase crude oil prices. However, as the interest rate of government bonds soared, the market turned to a wait-and-see tax and closed the transaction in a mixed tax.
The $1.9 trillion stimulus package promoted by US President Joe Biden supported the sentiment. Corona 19 vaccination is in progress, and the trend of decreasing new confirmed cases in major countries such as the United States was also a good thing. In the United States, the number of confirmed cases per day as of the previous day was about 54,000, which has fallen to the lowest level since October last year.
Good economic indicators were also released. The Federal Reserve Bank of New York announced in February that the Empire State index rose to 12.1 from 3.5 last month, the highest level since September last year. The market estimate (5.9) compiled by The Wall Street Journal also exceeded.
However, the market declined as interest rates continued to rise. On this day, the 10-year US bond rate recorded 1.3%, the highest rate since February of last year. As 10-year bonds broke through key levels, concerns over rising interest rates arose. Usually, when interest rates rise, investors tend to feel safe investing in safe assets, and the stock market tends to weaken.
Technology stocks fell all at once as it was predicted that it would be a burden on technology stocks that were receiving the greatest benefit from the low interest rate. Energy stocks continued to rise thanks to rising oil prices.
On the Chicago Options Exchange (CBOE), the volatility index (VIX) rose 7.46% from the previous trading day to 21.46.
Hankyung.com reporter Kim Hana [email protected]
Ⓒ Hankyung.com prohibits unauthorized reproduction and redistribution