Last night in the New York Stock Market, the three indexes hit an all-time high. Expectations for the passage of large-scale additional stimulus measures by the US Congress are rising. The economic recovery from the novel coronavirus infection (Corona 19) vaccine was visible, and the fourth quarter of last year, which exceeded expectations of companies, also supported the uptrend. As Tesla’s purchase of bitcoin became known, stocks related to semiconductors and payment systems surged.
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On the 8th (local time) on the New York Stock Exchange (NYSE), the Dow index closed at 31,385.76, up 237.52 points (0.76%) from the previous trading day. The Standard & Poor’s (S&P) 500 index rose 28.76 points (0.74%) to 3915.59, while the technology stock-oriented NASDAQ index also jumped 131.35 points (0.95%) to 13,987.64.
All three indices recorded the highest in terms of closing prices. The Dow Index rose for six consecutive trading days, and the S&P 500 and NASDAQ showed highs for three consecutive trading days.
Expectations for additional stimulus have driven the market. The Senate and House of Representatives passed a resolution that would pass a $1.9 trillion worth of stimulus package with a majority vote. This means that the Democratic Party will be able to handle additional stimulus on its own at any time.
Finance Minister Janet Yellen also said the day before, “the full employment level can be restored by 2022.” Expectations for an economic recovery from the spread of the Corona 19 vaccine, and earnings surprises in the fourth quarter of companies also had a positive effect.
Financial stocks have risen as interest rates have risen, with government bond yields hitting the highest amid the spread of stimulus expectations. On the other hand, the rise in large-scale technology stocks was modest as profit-making sales poured out.
Sangyoung Seo Kiwoom Securities(155,000 +4.03%) “In the US stock market, the news that Tesla has invested $1.5 billion in bitcoin has led to a theme market in which semiconductor and payment system related stocks surged.” The yearly price exceeded 2.0%. Financial stocks and economically sensitive stocks rose due to inflation expectations, and large technology stocks were weak.”
Tesla was up 1.31% on the news of buying Bitcoin. When Bitcoin once exceeded $44,000, payment companies Square and PayPal surged 8.15% and 4.72%, respectively.
Semiconductor makers such as Nvidia and AMD also rose 6.24% and 4.06%, respectively. Shopping company Sophie (4.45%), mining company Alt Global (9.23%), Riot blockchain
Cryptocurrency related stocks such as (40.25%) showed strength.
The aviation and oil refining industries also rose as the news that the Democratic Party is preparing for $14 billion in aid to the aviation industry. Delta Air Lines jumped 5.08% and ExxonMobil jumped 4.30%.
On the other hand, large tech stocks such as Alphabet (-0.21%), Facebook (-0.57%), Amazon (-0.87%), and Apple (0.11%) declined or ended slightly higher as sales to realize profits were opened.
Yoon Jin-woo, reporter at Hankyung.com [email protected]