The New York Stock market closed lower last night. It hit a new high in the early market on the expectation of an increase in US stimulus measures and then turned downward.
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On the 29th (local time) on the New York Stock Exchange (NYSE), the Dow index closed at 30,335.67, down 68.30 points (0.22%) from the previous trading day. The Standard & Poor’s (S&P) 500 index ended at 3727.04, down 8.32 points (0.22%). The Nasdaq Index, which is mainly focused on technology stocks, also closed at 12,850.22, down 49.20 points (0.38%).
The three indexes, which broke the record highs the day before, changed their intraday highs all at once at the beginning of the market. However, as sales for profit-taking poured in, it fell afterwards.
Interest has focused on whether the US additional stimulus measures will increase. President Donald Trump signed a $2.3 trillion (2520 trillion won) budget bill containing the federal government budget and stimulus measures for the next fiscal year on the 27th (local time).
Among them, $900 billion (about 986 trillion won) is a stimulus for Corona 19, and President Trump insisted that the maximum amount of Corona 19 support paid to individuals should be increased from $600 (660,000 won) to $2,000 (2.19 million won).
The Democrat-led U.S. House of Representatives passed a bill paying $2,000 per person in cash at President Trump’s argument. However, it is unclear whether it will pass the Senate led by the Republican Party. Republicans are said to be largely negative about the increase in cash payments.
The decline in the index on the same day was due to news that the Republican Senate Representative Mitch McConnell rejected the proposal to expedite the approval process for the increase bill.
Choi Jae-won, a researcher at Kiwoom Securities, said, “Although the rally continued in anticipation of increased stimulus and overcoming Corona 19 at the beginning of the market, it turned downward as sales poured out against the cash support of the Republican leader.” The appearance of this also drove the index decline,” he said.
All sectors fell except for healthcare (0.44%) and consumer economy (0.22%). Industrial and technology companies also fell 0.67% and 0.52%, respectively, while Intel ended the deal at $49.39, up $2.32 per share (4.93%) from the previous day. Interest drew attention as the hedge fund sent a letter urging them to come up with a strategic alternative. Tesla finished at $665.99, up $2.30 per share (0.35%) from the previous day. It has been on the rise for four consecutive days.
On the other hand, Apple recorded $134.87, down $1.82 per share (1.33%) from the previous day. It seems that it fell due to the level burden of a large increase the day before. Microsoft and Alphabet also fell 0.36% and 0.91%, respectively.
Yoon Jin-woo, reporter at Hankyung.com [email protected]
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