(New York = Yonhap News) Correspondent Oh Jin-woo of Yonhap Infomax = Major indices in the New York stock market started mixed up on the 3rd due to the influence of US Treasury yields showing signs of rising again.
As of 9:53 a.m. (East Time), the Dow Jones 30 Industrial Average on the New York Stock Exchange (NYSE) was trading at 31,504.81, up 113.29 points (0.36%) from the battlefield.
The Standard & Poor’s (S&P) 500 index fell 3.4 points (0.09%) from the battlefield to 3,866.89, and the technology stock-oriented NASDAQ index fell 62.49 points (0.47%) to 13,296.
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The market is keeping an eye on US interest rate trends, major economic indicators, and news related to the novel coronavirus infection (Corona 19) vaccine.
Sensitivity to US Treasury yields remains unchanged. The 10-year U.S. Treasury bond rate rose to around 1.48% at the beginning of the market. It is on the rise again from the previous day’s 1.4% decline.
Some foreign media reports that the European Central Bank (ECB) will not aggressively respond to rising interest rates is interpreted as putting upward pressure on interest rates.
Major stock index futures once showed an uptrend in pre-opening trading, but fell back when interest rates rose.
There are many concerns that a sharp rise in interest rates will adversely affect overvalued technology stocks.
Expectations for the rapid spread of the Corona 19 vaccine remain.
U.S. President Joe Biden said that by the end of May, the vaccine would be available for all American adults. It is about two months ahead of the timetable from the end of July originally planned.
In the United States, the Johnson & Johnson (J&J) vaccine, which requires only one vaccination, was recently approved, increasing the number of available vaccines to a total of three. President Biden is putting all his efforts into the rapid distribution of vaccines, such as invoking the Defense Goods Production Act so that other pharmaceutical companies, Merck, can also manufacture J&J vaccines.
The economic resumption movement in front-line states is also intensifying, with Texas saying that it will remove most of the corona19-related regulations from next week. However, it is still pointed out that hasty deregulation is dangerous.
Private employment indicators released on this day were somewhat sluggish.
According to the ADP National Employment Report, private sector employment rose 117,000 in February. Although it maintained the growth trend, it fell short of the 225,000 increase in the market forecast compiled by The Wall Street Journal.
However, the negative impact on the stock market is limited as sluggish employment can act as a factor for lower interest rates.
Investors are also paying close attention to the remarks of Fed Chairman Jerome Powell, scheduled for the next day.
New York stock market experts predicted that volatility may continue due to interest rate movements.
“High volatility is expected,” said Shima Sha, chief strategist at Principal Global Investor. “He said.
Stock markets in major European countries are also mixed. The pan-European index Stoxx 600 fell 0.1%.
International oil prices have risen. Western Texas crude oil (WTI) prices for April moved 1.82% to $60.80, up 1.82% from the previous trading day, while Brent crude rose 1.52% to $63.62.
According to the Chicago Merchandise Exchange (CME) Fed Watch, the Federal Fund (FF) interest rate futures market reflects the possibility of a 25bp base rate hike in September by 4%.
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2021/03/04 00:06 sent