(New York = Yonhap News) Correspondent Oh Jin-woo of Yonhap Infomax = Major indices in the New York Stock Market started with a sharp decline ahead of the announcement of the results of leading companies such as the Federal Open Market Committee (FOMC) and Apple on the 27th.
As of 9:55 am (Eastern Time), the Dow Jones 30 Industrial Average on the New York Stock Exchange (NYSE) traded at 30,421.52, down 515.52 points (1.67%) from the battlefield.
The Standard & Poor’s (S&P) 500 index fell 74.2 points (1.93%) from the battlefield to 3,775.42, while the technology stock Nasdaq index fell 289.13 points (2.12%) to 13,336.94.
The market is paying attention to the FOMC results to be released in the afternoon and Apple and Tesla earnings.
The Federal Reserve (Fed) is not expected to change monetary policy at this meeting.
The market may fluctuate depending on what Fed Chair Jerome Powell will say about the timing of tapering (reduction in bond purchase).
Chairman Powell is expected to maintain a dove (preferring monetary easing) position that it is too early to discuss tapering, but the key is how much confidence in the market will be given.
After the market closes, key technology companies such as Apple, Tesla, and Facebook will all announce their results.
The stock prices of these companies have risen significantly in recent years with the expectation that their earnings will be good. As expectations have already been considerably reflected, the volatility of the stock price may increase depending on earnings results. The stock prices of these companies are showing a decline in the beginning of the market.
Microsoft, which has released earnings after the market close the day before, surpassed market expectations, and the stock price is on the rise. On the other hand, Boeing recorded a much larger quarterly net loss than expected, and the stock price is plunging around 4%.
Investors are also drawing attention to the fluctuations in the game stop stock price. Gamestop shares have recently fluctuated due to short selling of hedge funds and intensive buying of individual investors.
Gamestop shares are soaring by more than 100% at the beginning of the market due to news that hedge fund Melvin Capital eventually liquidated its short selling position.
The stock price of AMC, a movie theater chain, one of the other stocks that individual investors focus on, recorded an increase of around 300% at the beginning of the market.
Some also raise concerns about investors’ excessive risk preference.
In its report, the International Monetary Fund (IMF) pointed out that investors are showing excessive confidence due to the government’s stimulus measures and expectations that this will continue, and that the risk of a sudden plunge in asset prices has increased.
The growing concern about the spread of a novel coronavirus infection (Corona 19) vaccine is also a factor that weighs on investment sentiment.
Points are steadily raised that the vaccine supply may not be smooth, as it is expected that AstraZeneca will supply less than planned supply to Europe.
The economic indicators released that day were also sluggish.
The US Department of Commerce announced that December durable goods orders increased 0.2% from the previous month. Compared to the 1.2% increase in November, the increase has decreased significantly. It fell short of the 0.8% increase in the market forecast compiled by The Wall Street Journal.
New York stock market experts expressed concern over delays in vaccine supply.
“The delay in vaccine supply and continuing containment measures are a double punch for investors,” said Hani Redha, portfolio manager at Finebridge Investments. “I think the market was expected to discuss mitigation rather than strengthening of containment by now.” said.
Stock markets in major European countries are also weak. The pan-European index Stoxx 600 fell 1.76%.
International oil prices fell. In March, Western Texas crude oil (WTI) prices moved 0.95% to $52.11, down 0.95% from the previous trading day, and Brent oil moved 0.86% to $55.43.
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2021/01/28 00:05 sent