In the New York Stock Market, major indexes surged as US employment indicators were good and government bond yields were limited.
On the 5th (US time) on the New York Stock Exchange (NYSE), the Dow Jones 30 Industrial Average closed at 31,496.30, up 572.16 points (1.85%) from the battlefield.
The Standard & Poor’s (S&P) 500 index soared 73.47 points (1.95%) from the battlefield to 3,841.94, while the technology stock-oriented NASDAQ index closed at 12,920.15, up 196.68 points (1.55%).
The Dow index rose about 1.8% this week.
The S&P500 index rose by 0.8%, while the Nasdaq fell by about 2.1%.
The market watched key indicators such as employment and the movement of US Treasury yields.
Employment indicators came out much better than expected, reinforcing confidence in the economic recovery.
The U.S. Department of Labor announced in February that employment in the non-agricultural sector increased by 379,000.
This was more than the market estimate of 210,000 people increased by the Wall Street Journal.
In January, employment also increased from 49,000 to 166,000.
The unemployment rate also fell to 6.2% from 6.3% last month.
It was lower than the market forecast of 6.3%.
Employment in the leisure and hospitality sector, which was sluggish due to the new coronavirus infection (Corona 19), has increased by more than 350,000.
The economic resumption following the corona 19 slowdown is bringing warmth to the job market.
Considering the further opening of the economy in the future, expectations have risen that employment will increase rapidly.
Although employment was good, the rise in US Treasury yields was limited, which provided relief to the market.
The 10-year U.S. Treasury bond rate rose to 1.62% immediately after the release of the employment index.
However, it gradually fell back and fell back to the mid-1.5% range.
Major indices were also unstable at the beginning of the market due to rising interest rates, but rebounded quickly as interest rates lowered the level.
Remarks continued that the Federal Reserve System (Fed and Fed) would not directly respond to rising interest rates.
“The need for us to become more dove is not right now,” said James Bourd, president of the Federal Reserve Bank of St. Louis. “Operation Twist is not currently seen as an option.”
Jerome Powell, chairman of the Federal Reserve System (Fed), did not clearly reveal his willingness to curb the rise in bond yields, contrary to market expectations the previous day.
However, even with the remarks of the governor, the interest rate on this day was not greatly fluctuated.
Although the stock indices ended up sharply, intraday volatility remained.
The difference between the highs and lows of the Dow index exceeded 800 points.
The Nasdaq crashed more than 2.5% of the battlefield at one time during the day.
The US$1.9 trillion stimulus package being debated in the Senate is going smoothly with some revisions.
The Senate amended the bill by reducing the amount of additional unemployment insurance assistance from $400 per week to $300 per week, but extending the period of assistance by a month.
The Senate is also expected to pass a stimulus bill sooner or later.
After the Senate resolution is over, the bill goes through the House ballot process again.
By industry, technology stocks rebounded 1.97% on the same day, with all sectors rising.
Energy rose 3.87% on the back of a surge in oil prices, and industrial leaders rose 2.39%.
Other economic indicators released on this day were somewhat sluggish.
The US Department of Commerce announced that the trade deficit in January was $68.2 billion, an increase of 1.9% from the previous month.
It was more than the market forecast of 66.7 billion dollars.
The Fed announced in January that consumer credit (seasonally adjusted, excluding real estate loans) fell by $1.3 billion from the previous month.
The annual rate decreased by 0.4%.
Experts in New York’s stock market assessed that the subsidence of rising interest rates, despite strong employment, fueled the stock market.
Gregory Paranello, head of US interest rates at Aberibetsu Securities, said, “Today’s employment indicators confirmed that the economy will be broadly reopened.” This provided support for the stock and credit markets.”
According to Fedwatch of the Chicago Merchandise Exchange (CME), the FF interest rate futures market reflected the possibility of a 25bp base rate hike in September by 4.0%.
On the Chicago Options Exchange (CBOE), the volatility index (VIX) recorded 24.66, down 13.69% from the previous trading day.
/yunhap news