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In the New York Stock Market, major indexes declined despite a surge in international oil prices and a deepening of technological anxiety despite good indicators.
On the 24th (US time) on the New York Stock Exchange (NYSE), the Dow Jones 30 Industrial Average closed at 32,420.06, down 3.09 points (0.01%) from the battlefield.
The Standard & Poor’s (S&P) 500 index closed at 3,889.14, down 21.38 points (0.55%) from the battlefield, while the technology stock-oriented Nasdaq index fell 265.81 points (2.01%) to 12,961.89.
The market watched major economic indicators, the comments of the Fed Chairman Jerome Powell, and international oil price trends.
At the beginning of the market, factors supporting the expectation of an economic recovery prevailed.
The eurozone’s economic indicators were good, reducing concerns about the economic situation in Europe.
The Eurozone’s preliminary value for the March Manufacturing Purchasing Managers Index (PMI) announced by information provider IHS Markit was 62.4, far exceeding the market estimate of 57.6.
It is higher than 57.9 in February.
The preliminary value for the service industry PMI for March was 48.8, exceeding the market estimate of 46.0.
It was 45.7 in February.
In the United States, the index for February was not good due to weather such as cold waves and heavy snow, but the index for March was good.
The preliminary value for the manufacturing PMI for March announced by IHS Markit was 59.0, up from the previous month’s final value of 58.6.
The market forecast was 59.8.
The service industry PMI preliminary value rose to 60.0 from 59.8 last month.
It was slightly less than the market forecast of 60.1, but it was the highest in 80 months.
The Ministry of Commerce announced that the February durable goods order performance fell 1.1% from the previous month.
It recorded the first decline in ten months since April of last year, when the pandemic crisis began.
It fell short of the market forecast of 0.4% increase.
International oil prices have risen sharply due to a ship aground accident on the Suez Canal, a major crude oil transport route.
Western Texas Crude Oil (WTI) surged close to 6% due to concerns over delayed supply of crude oil, providing support to the stock market, focusing on energy-related stocks.
As a result, the so-called’reflation’ trading pattern, in which technology stocks are weak, but the economic cycle is strong, has unfolded in the early stages of the market.
However, as uncertainties in the technology stocks intensified, all of the major indexes fell sharply at the end of the market and ended lower.
Tesla fell by 4.8% that day, and Apple also fell by 2%.
In his testimony to the Senate, Chairman Powell said he did not expect inflation to overheat for a long time.
He added that the rise in interest rates is not as worrisome as there was order.
The 10-year U.S. Treasury bond yield continued to decline after Powell’s testimony, falling back to the early 1.6% range.
The 10-year U.S. Treasury bonds, which surpassed 1.7% last week, are continuing a relatively stable trend at 1.6% this week.
Concerns about the rapid rate hike have declined somewhat.
However, risk factors remain, as the situation of Corona 19 worsens in Europe and controversy over the spread of vaccines continues.
Many countries, including Germany and France, have reinforced the blockade.
In addition, the intensified conflict between Western countries such as the United States and Europe and China is also a burden.
By industry on this day, communication fell 1.66%, and technology led fell 1.21%.
Energy rose 2.52%.
New York stock market experts diagnosed that volatility may appear rather than directional movement.
“The rally has been going on for the past year, and the market will stop and take a breath from here,” said Brian O’Reilly, head of market strategy at Mediolanum International Fund. “It will be much more difficult to generate profits for the remainder of the year.” said.
According to Fedwatch of the Chicago Merchandise Exchange (CME), the Federal Fund (FF) interest rate futures market reflects the possibility of a 25bp base rate hike in September by 8.6%.
On the Chicago Options Exchange (CBOE), the volatility index (VIX) recorded 21.2, up 4.43% from the previous trading day.
/yunhap news