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▲ New York Stock Exchange. AP |
[에너지경제신문 안효건 기자] All three of the major indexes of the New York Stock Market rose more than 1%.
On the 26th (US time) on the New York Stock Exchange (NYSE), the Dow Jones 30 Industrial Average ended at 3,3072.88, up 453.40p (1.39%) from the battlefield.
The Standard & Poor’s (S&P) 500 index rose 65.02p (1.66%) from the battlefield to 3974.54, while the technology stock Nasdaq index rose 161.05p (1.24%) to 13138.73.
The S&P 500 index is an all-time high based on the closing price.
The Dow index rose by 1.4% this week. The S&P 500 also rose by about 1.6%. The Nasdaq fell by about 0.6%.
By industry on this day, all industries rose by excluding communications, which fell by 0.34%. Energy rose 2.62%, and technology shares rose 2.54%.
The US Personal Consumption Expenditure (PCE) indicator released on that day was somewhat sluggish. However, as it was interpreted as a result of the abnormal cold wave and heavy snow, it did not have a significant adverse effect.
The Ministry of Commerce announced in February that personal consumption expenditure fell by 1.0% compared to the previous month. It was less than the 0.8% decline in expert estimates compiled by The Wall Street Journal.
Personal income (after tax) decreased by 7.1% compared to the previous month. The market forecast was a 7.0% decline.
As the US government introduced a new $1.9 trillion stimulus plan, the outlook is that income will rise again and consumption will expand.
The final value of the March Consumer Attitude Index released by the University of Michigan was 84.9, up from 76.8, the last month’s final value. This is the highest level in the last year.
It exceeded the market forecast of 83.7 and the previously announced preliminary value of 83.0.
The business environment index for March released by the Ifo Economic Research Institute in Germany, Europe’s largest economy, was 96.6, the highest level since June 2019.
Vaccination is also rapidly progressing, with US President Joe Biden promised to achieve 200 million vaccinations of the novel coronavirus infection (Corona 19) vaccine within 100 days of inauguration.
Bank stock prices have also risen, providing vitality to the stock market.
This was fueled by the announcement that the Federal Reserve (Fed) would lift regulations on bank dividends and treasury stock purchases after the end of June.
The timing of deregulation was delayed a little more than originally expected. However, it is an evaluation that policy uncertainty has been resolved.
JPMorgan Chase’s share price rose 1.7%, while Bank of America’s shares rose more than 2.7%.
It is a burden that US Treasury yields have raised the level again thanks to confidence in the economic recovery. The 10-year Treasury bond rate rebounded from 1.61% on the previous day to around 1.67% on the day.
Jerome Powell, chairman of the Federal Reserve (Fed), gave a clue that “when the economy will almost completely recover,” but expressed the view that someday aid measures will be withdrawn.
Although the PCE price index for February released on that day was stable, prices are expected to rise sharply from March due to the base effect. Excluding highly volatile food and energy, the core PCE price index rose 0.1% MoM. Compared to the previous year, it was up 1.4%.
Philadelphia Governor Patrick Harker said the rise in interest rates is positive for the economic outlook, and there are no signs of slowing investment due to rising interest rates.
Nasdaq, a technology stock-focused on interest rates, ended higher with a sharp rebound in the latter half of the market, but it was somewhat unstable, with a reversal of declines during the day.
New York stock market experts say risk sentiment has improved, but it is too early to be relieved.
“In general, things look good, but it’s still a very unstable environment,” said Susan Hutchins, CEO of Newton Investments’ real return investment.
“But this won’t end the direction of the journey,” he said. “The revival of the US economy could fuel further increases in stock prices.”
According to Fedwatch of the Chicago Merchandise Exchange (CME), the FF interest rate futures market reflects the possibility of a rate hike of 25bps in September by 2.2%.
On the Chicago Options Exchange (CBOE), the volatility index (VIX) fell 4.8% from the previous trading day to 18.86.