Major indices in the New York Stock Market rose sharply, led by technology stocks, driven by a fall in US Treasury yields.
On the 9th (US time) on the New York Stock Exchange (NYSE), the Dow Jones 30 Industrial Average closed at 31,832.74, up 30.30 points (0.1%) from the battlefield.
The Standard & Poor’s (S&P) 500 index rose 54.09 points (1.42%) from the battlefield to 3,875.44, while the technology stock-oriented NASDAQ index soared 464.66 points (3.69%) to 13,073.82.
The NASDAQ recorded the largest daily increase in about four months since last November.
At one time during the week, it surged by about 4.3%.
The Dow Index broke an all-time high in terms of intraday prices.
The market watched the trend of US Treasury yields and new stimulus measures.
As the U.S. Treasury bond rate fell, technology stocks, which had fallen under the burden of rising interest rates, soared sharply.
The 10-year U.S. Treasury bond rate fell to the mid-1.5% range from 1.6% on the previous day.
Interest rates stabilized by the fact that the US Treasury Department’s 3-year Treasury bill was good.
The issue rate was low, and the bid rate was 2.69 times higher than the average for the last six months.
This means that more investors flocked to buy government bonds.
As the interest rate level has risen sharply, it is interpreted that the number of institutions investing in US Treasury bonds has increased again.
The Ministry of Finance is planning to continue bidding for government bonds such as 10-year bonds the next day and 30-year bonds on Thursday.
Depending on the results of long-term bidding, the short-term direction of interest rates may become clearer.
Amid high expectations for a rapid recovery in the economy, the US interest rate showed resistance at around 1.6% on a 10-year basis, and the stock market’s investment sentiment is also stabilizing.
Tesla’s stock price soared more than 19.6% on the same day, recovering from the previous decline to a considerable level.
Shares of most of the key technology stocks have risen sharply, with Apple rising more than 4% and Facebook soaring by 4.1%.
Economically sensitive stocks that remained strong despite the recent overall market uncertainty were relatively sluggish.
The Dow Index, which is centered on economically sensitive conglomerates, rose more than 1% compared to the battlefield during the midday period, but it quickly decreased at the end of the market.
However, the US’s $1.9 trillion stimulus plan and the expansion of vaccination against the new coronavirus infection (Corona 19) are expected to lead to a strong economic recovery.
The House of Representatives plans to pass the stimulus bill the next day.
In the House of Representatives, the Democratic Party has a clear advantage, so there are no obstacles to passing the bill.
President Joe Biden is expected to sign the bill before this weekend.
President Biden previously said that US$1,400 per capita in cash could be paid to Americans during the month.
By industry on this day, technology stocks soared 3.41% and communications rose 0.92%.
On the other hand, energy fell 1.91% and industrial stocks fell 0.39%.
The economic indicators released on this day were mixed.
The National Self-Employment Federation (NFIB) announced that the February small business optimism index rose to 95.8, from 95.0 last month.
It is an increase in 4 months.
However, it was below 96.5 degrees, experts surveyed by the Wall Street Journal.
New York stock market experts predicted that the US interest rate hike could be subdued.
Hani Redha, portfolio manager at Finebridge Investments, said, “We believe that a large portion of the interest rate movement has already been carried out. At this level, interest rates can stabilize as additional bond buying forces inflow.”
According to the Chicago Merchandise Exchange (CME) Fed Watch, the FF interest rate futures market was 25bp in September.
We reflected the possibility of an interest rate hike by 5.9%.
On the Chicago Options Exchange (CBOE), the volatility index (VIX) fell 5.65% from the previous trading day to 24.03.
/yunhap news