New York Stock Exchange, Uneasy Rise Due to Plunge in U.S. Consumer Confidence… Closes Strongly Consolidated
[연합뉴스 자료사진]
New York Stock Exchange, Uneasy Rise Due to Plunge in U.S. Consumer Confidence… Closes Strongly Consolidated
(New York = Yonhap News) Jin Jeong-ho, Yonhap Infomax Correspondent = The three major stock indices on the New York Stock Exchange all closed strong. With daily record highs, there are concerns about peaks, but for now, the buying trend seems to be maintaining its lead.
On the 24th (Eastern Standard Time), the Dow Jones Industrial Average closed at 42,208.22, up 83.57 points (0.20%) from the previous day on the New York Stock Exchange (NYSE).
The S&P 500 index closed at 5,732.93, up 14.36 points, or 0.25%, and the Nasdaq Composite Index rose 100.25 points, or 0.56%, to 18,074.52.
The S&P 500 and Dow Jones Industrial Average both hit new all-time highs today. The S&P 500 has hit new highs for the first time in three trading days, while the Dow has hit new highs for the second consecutive trading day.
Although the transaction was closed at a strong level, there was no steady increase in the upward trend, such as a downward turn during the session. This means that the selling sentiment is also continuing to wander around the market, looking for an opportunity.
Stock indexes, which had been buoyed by China’s massive economic stimulus, were dampened by news that the U.S. consumer confidence index had fallen by the most in three years.
The Conference Board (CB) announced that the U.S. consumer confidence index for September was 98.7. This is a sharp drop of nearly 7 points compared to the upwardly revised August figure of 105.6, and the largest monthly drop since August 2021. It also fell short of the market expectation of 103.9 by more than 5 points.
“The deterioration in consumer sentiment across all components of the index reflects consumers’ concerns about labor market conditions,” said Dana Peterson, chief economist at CB. “The labor market remains healthy, with low unemployment, few layoffs and rising wages, but respondents responded to fewer hours worked, slower wage growth and fewer job openings.”
Moreover, consumers raised their 12-month average inflation expectations to 5.2% despite the overall slowdown in inflation and the decline in some product prices, meaning that price anxiety is still weighing on consumer sentiment.
As job insecurity grew stronger in response to this news, the stock index once turned downward.
“When we start hearing that everything is great or everything is rosy, we start to get more concerned,” said Julian Emanuel, managing director at Evercore ISI.
However, the stock index temporarily turned downward due to consumer sentiment anxiety, but soon turned upward and closed in a strong consolidation.
Among the major market cap stocks, NVIDIA stood out with a 3.97% increase. The stock gained momentum as uncertainty was removed by news that CEO Jensen Huang had finalized the sale of his NVIDIA stake.
Chinese stocks listed on the New York Stock Exchange also rose in tandem with the Chinese government’s large-scale stimulus package. The Chinese government announced a monetary easing stimulus package that included lowering the benchmark interest rate and securing loan liquidity.
E-commerce giants Alibaba surged 7.9%, Temu’s parent company PDD jumped 11.24%, JD.com jumped 13.9%, Chinese travel agency Trip.com also rose more than 8%, and Baidu, the world’s largest search engine, rose more than 7%.
Meanwhile, U.S. credit card company Visa plunged more than 5% on news that the U.S. Justice Department is preparing to sue the company for monopolizing the debit card market.
Deere, which owns the world’s largest farm equipment manufacturer John Deere, has held its ground despite Republican presidential candidate Donald Trump’s threat to impose a 200% tariff on the company’s plans to move production to Mexico.
Caterpillar, a symbol of American manufacturing and the world’s largest heavy equipment manufacturer, also rose 4% on expectations that China’s stimulus measures will improve manufacturing conditions.
“While investors welcomed the big cut, markets are likely to experience significant volatility in the coming weeks,” said Quincy Krosby, chief global strategist at LPL Financial. “Markets will be very sensitive to signs that the economy is weakening at a rapid pace.”
As U.S. consumer sentiment cools rapidly and job insecurity grows again, bets on a “big cut” in November have also increased.
According to the Chicago Mercantile Exchange (CME) FedWatch Tool, the federal funds futures market reflected a 62.3% chance of a 50bp cut in the benchmark interest rate at the November Federal Open Market Committee (FOMC) meeting at the close. The probability of a 25bp cut has dropped to 37.7%.
By industry, materials recorded the highest increase, rising 1.35%, amid mixed performance. On the other hand, finance fell nearly 1%, and the remaining industries were mixed within the consolidation range.
The CBOE Volatility Index (VIX) closed at 15.39, down 0.50 points (3.15%) from the previous close.
jhjin@yna.co.kr