In the New York Stock Market, major indexes started lower on the 22nd due to sluggish eurozone economic indicators and disappointing corporate performance.
As of 9:44 a.m. (Eastern time), the Dow Jones 30 Industrial Average on the New York Stock Exchange (NYSE) was trading at 30,979.10, down 196.91 points (0.63%) from the battlefield.
The Standard & Poor’s (S&P) 500 index fell 17.75 points (0.46%) from the battlefield to 3,835.32, while the technology stock Nasdaq index fell 42.09 points (0.31%) to 13,488.83.
The market watched key economic indicators, corporate performance, and stimulus measures promoted by the new US government.
New York’s stock market was bullish this week with optimism following the inauguration of the new US president Joe Biden, but this day is a trend that reverses the rise.
As key economic indicators such as the Eurozone’s Synthetic Purchasing Managers Index (PMI) were sluggish, the unstable economic situation was once again highlighted.
According to information provider IHS Markit, the Eurozone’s preliminary composite PMI for January was 47.5, less than the market estimate of 48.0.
The manufacturing industry index was good, but the service industry index was sluggish.
The synthetic PMI for January of Germany, Europe’s largest economy, also reached 50.8, the lowest in seven months.
The sluggish performance of IBM also put a burden on the stock market.
IBM posted better-than-market profits in the fourth quarter, but sales were less than expected.
IBM shares fell sharply around 8% in pre-opening transactions.
Intel’s stock price also fell around 5% before opening.
Intel’s earnings were better than expected, but it can be interpreted that the fact that there was an accident in which earnings were leaked before the market close on the previous day had a negative impact.
In addition, the fact that the stock price of major technology companies rose sharply due to the strong earnings of Netflix this week is one of the factors that raised the level burden.
In relation to the stimulus that President Biden will promote, interest is shifting to whether or not the parliament passes smoothly.
In the Republican Party, Senators Lisa Merkoski and Mitt Romney, who belong to the middle-of-the-way group, expressed skepticism about the $1.9 trillion stimulus package.
They questioned the need for an additional stimulus of this size, shortly after the $900 billion stimulus was introduced.
In order for Biden’s stimulus bill to pass through parliament smoothly, the cooperation of the Republican centerpieces is considered an essential factor.
In the Democratic Party, Rep. Manchin Jo previously expressed negative views on untargeted stimulus measures such as cash payments.
The Wall Street Journal diagnosed that the fact that the results of leading technology companies such as the Federal Open Market Committee (FOMC) and Apple are scheduled to be announced next week is a factor that is making investors cautious.
New York stock market experts diagnosed volatility could arise as the market shifts focus as the Congress debates stimulus measures.
“Washington’s political realities are beginning to affect the market,” said Seven Report’s founder of Tom Essay. “It’s become more unclear whether the Democratic Party’s ambitious stimulus goals can be enacted in law.”
Stock markets in major European countries are also weak.
The pan-European index Stoxx 600 fell by 0.72%.
International oil prices also fell.
Western Texas crude oil (WTI) prices for March moved 2.67% to $51.71, down 2.67% from the previous trading day, while Brent oil moved 2.34% to $54.97.
/yunhap news