(New York = Yonhap News) Correspondent Oh Jin-woo, Yonhap Infomax = In the New York stock market, major indexes surged on the back of the subsidence of the rise in US Treasury yields.
On the 1st (US time) on the New York Stock Exchange (NYSE), the Dow Jones 30 Industrial Average closed at 31,535.51, up 603.14 points (1.95%) from the battlefield.
The Standard & Poor’s (S&P) 500 index soared 90.67 points (2.38%) from the battlefield to 3,901.82, while the technology stock-oriented NASDAQ index closed at 13,588.83, which jumped 396.48 points (3.01%).
[제작 남궁선. 게티이미지뱅크 제공]
The S&P 500 index recorded the largest daily increase since June last year.
The market watched the US interest rate trends, key economic indicators, and the comments of the Federal Reserve (Fed) personnel.
The US Treasury bond yield, which surged last week, showed a stable trend, providing a sense of relief to the stock market.
The 10-year U.S. Treasury bond rate traded at 1.43% at the close of the stock market on the same day. After a temporary surge of over 1.6% last week, the movement has been somewhat calm.
As the interest rate movement subsided, Apple rose about 5.4% on that day, and Tesla surged about 6.4%.
Fed officials continued to say that rising interest rates were not a worrisome phenomenon.
“Given the positive economic outlook, the rise in bond yields is not surprising,” said Mr. Thomas Barkin Richmond Yen. “The rise in interest rates will not constrain the economy.”
He added that interest rates are still low compared to before the pandemic.
Diagnosis has begun to come out that there is no need to worry excessively about rising interest rates even in leading investment institutions.
Goldman Sachs assessed that the 10-year Treasury bond would not pose a major threat to stocks until it rises to 2.1%.
An analyst at JPMorgan also advised to use market uncertainty as a buying opportunity, saying, “I think Treasury yields will move higher in the future, but it’s not a bad sign for stocks.”
Other factors, such as new stimulus measures in the United States and a new coronavirus infection (Corona 19) vaccine, are also favorable to the stock market.
US health officials have approved the emergency use of the development developed by Johnson & Johnson (J&J). It is the third vaccine approved in the United States.
J&J’s vaccine only needs to be given once and can be stored at room temperature. J&J said Americans would start getting the vaccine within 48 hours.
The House of Representatives passed a $1.9 trillion stimulus bill last weekend. It is reported that the Democratic Party plans to quickly pass the rest of the bill, except for the controversial minimum wage increase in the Senate.
Excluding the plan to raise the minimum wage, it is expected that the stimulus will pass through the Senate without the support of the Republican Party.
Major US economic indicators were also good.
The Supply Management Association (ISM) announced in February that the Manufacturing Purchasing Managers Index (PMI) rose to 60.8 from 58.7 last month. It also exceeded the expert estimate of 58.9 compiled by The Wall Street Journal.
The final manufacturing PMI (seasonal adjustment) for February announced by information provider IHS Markit was 58.6, down from the previous month’s final value of 59.2. However, it exceeded the expert forecast and the previously announced preliminary value of 58.5.
The Ministry of Commerce announced that construction spending in January was recorded at an annual rate of $1.5214 billion (seasonal adjustment), an increase of 1.7% from the previous year. It was better than the 0.8% increase in the market outlook.
By industry on this day, technology stocks soared 3.18% with all sectors rising. Financial stocks rose 3.12% and industrial stocks rose 2.51%.
New York stock market experts say concerns over interest rates could be subsided.
Peter Buqba, Chief Investment Officer of the Bleekley Advisory Group, said, “Equity investors still believe that the rise in interest rates is generally a positive factor and does not pose a threat to the stock market despite anxiety over some overvalued stocks last week.” “The challenge of rising interest rates and rising interest rates will be the key theme this year.”
According to the Chicago Merchandise Exchange (CME) Fed Watch, the FF interest rate futures market reflects the possibility of a 25bp base rate hike in September by 7%.
On the Chicago Options Exchange (CBOE), the volatility index (VIX) fell 16.46% from the previous trading day to 23.35.
Unauthorized reproduction-redistribution prohibited
2021/03/02 06:39 sent