(New York = Yonhap News) Correspondent Oh Jin-woo, Yonhap Infomax Correspondent = In the New York stock market, major indexes declined as fears of a recurrence of the novel coronavirus infection (Corona 19) increased in Europe.
On the 23rd (US time) on the New York Stock Exchange (NYSE), the Dow Jones 30 Industrial Average closed at 32,423.15, down 308.05 points (0.94%) from the battlefield.
The Standard & Poor’s (S&P) 500 index closed at 3,910.52, down 30.07 points (0.76%) from the battlefield, while the technology stock-oriented NASDAQ index closed at 13,227.70, down 149.85 points (1.12%).
The mayor watched the testimony of Congress from President Jerome Powell’s Federal Reserve (Fed), the situation of Corona 19, and the movement of international oil prices.
With the spread of the mutant virus in Europe, the number of new corona19 infections is increasing rapidly again. The fear of the so-called third epidemic has grown even further.
Major countries, such as Germany and France, reinforced the blockade. There is no choice but to slow down the pace of economic normalization.
Controversy persisted over the AstraZeneca (AZ) vaccine, which is heavily dependent on Europe.
The U.S. National Institute of Allergy and Infectious Diseases (NIAID) raised suspicion that outdated information may have been included in the clinical trial results of the Corona 19 vaccine developed by AstraZeneca (AZ).
AZ said it would release initial analysis data based on the latest data within 48 hours.
Vaccines are spreading well in the United States, but new infections are rising again in a number of states. According to CNBC, new infections increased in 21 states over the weekend.
International oil prices have also fallen sharply as concerns over the corona 19 outbreak have risen. Western Texas Crude Oil (WTI) plunged more than 6% on the same day and retreated to the lowest level since early February.
It is a factor that puts a burden on economic cycle stocks that have been relatively strong in recent years.
The US Treasury bond rate fell in reaction, but it did not provide a strong driver for the stock market as concerns over a setback in economic recovery emerged. The 10-year Treasury bond yield was 1.63% at the close of the stock market.
In the House of Representatives, Powell reaffirmed his easing monetary policy continuation policy, saying, “The economic recovery is far from full, and the Fed will continue to provide necessary support.”
He said the US government’s massive stimulus package would not increase inflation significantly, he said, adding that the Fed has a means of responding to increased inflationary pressures.
US Treasury Secretary Janet Yellen said, “next year, we will see the United States return to full employment,” thanks to the government’s stimulus measures.
Yellen also said that it is considering changes in tax policy, which will help finance the infrastructure spending program.
By stock on that day, heavy equipment manufacturing company Caterpillar fell by about 3.4%, putting a burden on the market as a whole.
By industry, industrial stocks fell 1.76%, and financial stocks fell 1.41%. Technology shares fell 0.64%.
The economic indicators released on this day were mixed.
The US Department of Commerce announced that the current account deficit in the fourth quarter was $185 billion, an increase of $7.6 billion (4.2%) from the previous quarter. It was more than the $187 billion market estimate compiled by the Wall Street Journal.
The Ministry of Commerce said in February that new home sales fell 18.2% from the previous month to an annual rate of 775,000 units (seasonal adjustment). The market outlook was worse than 870,000 units, down 5.7%. It is estimated that the heavy snowfall and cold wave in February had an effect.
On the other hand, the Richmond Federal Reserve announced that the manufacturing index for March rose to 17 from 14 last month. It exceeded the market forecast of 16.5.
New York stock market experts assessed that the deterioration of the Corona 19 situation in Europe has retreated the fever for a rapid economic recovery.
“The reflation theme seems to be hitting some obstacles,” said Invesco’s Sebastian Maki fund manager. “We will be in a phase of economic recovery, but we may have gotten a bit ahead.”
“We paused to rethink how fast the economic recovery would really be,” he added.
According to the Chicago Merchandise Exchange (CME) Fed Watch, the FF interest rate futures market is as of 25bps in September.
We reflected the possibility of an interest rate hike by 2.2%.
On the Chicago Options Exchange (CBOE), the volatility index (VIX) recorded 20.3, up 7.52% from the previous trading day.
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2021/03/24 05:49 sent