(New York = Yonhap News) Correspondent Oh Jin-woo of Yonhap Infomax = In the New York Stock Exchange, major indexes started rising on the 10th, as the US price rose only to the expected level of the market.
As of 9:55 am (Eastern Time), the Dow Jones 30 Industrial Average on the New York Stock Exchange (NYSE) traded at 32,128.55, up 295.81 points (0.93%) from the battlefield.
The Standard & Poor’s (S&P) 500 index traded at 3,909.98, up 34.54 points (0.89%) from the battlefield, while the technology stock-oriented NASDAQ index traded at 13,270.38, up 196.55 points (1.50%).
The market watched the US price index, government bond interest rate trends, and news related to the novel coronavirus infection (Corona 19) vaccine.
The US Consumer Price Index (CPI) for February rose to market expectations.
The Ministry of Labor announced that the CPI for February rose 0.4% from the previous month. It was in line with expert forecasts compiled by the Wall Street Journal (WSJ). Compared to the previous year, it rose 1.7%, consistent with the market forecast.
Excluding volatile food and energy, the core CPI rose 0.1% MoM in February. The market forecast was also up 0.1%. The core CPI rose 1.3% YoY, which is the expected level of the market.
As it was confirmed that inflation is still at a controlled level, the 10-year Treasury bond yield has also retreated to the low 1.5% range.
The recent surge in government bond yields amid massive stimulus measures and concerns about inflation amid economic resumption has made the stock market unstable. As such, investors are expressing relief at the expected level of inflation.
However, there is still caution that inflation will increase from March, when the base effect of last year’s pandemic shock is reflected in earnest. Jeffrey Gundlock, CEO of Doubleline Capital, a leading Wall Street investor, pointed out that the CPI could exceed 4% after a few months.
Investors are also watching the US Treasury’s 10-year Treasury bill. The good three-year bidding result the previous day lowered interest rates. It is the time when the short-term direction of interest rates can become more clear depending on the results of long-term bidding.
Positive news has been added regarding the Corona 19 vaccine.
NBC broadcasts reported that US President Joe Biden will announce plans to purchase an additional 100 million doses of the Johnson & Johnson (J&J) vaccine on the same day.
The US House of Representatives is set to pass a $1.9 trillion stimulus bill today. Although this is a planned procedure, it is a factor that can strengthen confidence in the economic recovery.
New York stock market experts expressed relief with the moderate inflation index.
National Securities’ Art Hogan said, “The market’s biggest concern since last month was that inflation could be overheating than expected.”
Stock markets in major European countries are also strong. The pan-European index Stoxx 600 rose 0.42%.
International oil prices have risen. The price of Western Texas crude oil (WTI) for April moved to $64.68, up 1.05% from the previous trading day, while Brent oil moved to $68.15, up 0.99% from the previous trading day.
According to Fedwatch of the Chicago Merchandise Exchange (CME), the Federal Fund (FF) interest rate futures market reflected the possibility of a 25bp base rate hike in September by 11.6%.
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2021/03/11 00:08 sent