New York stocks rose on news that Republicans in the United States had proposed a plan to suspend the debt ceiling until December.
At the New York Stock Exchange (NYSE) on the 6th (Eastern time), the Dow Jones Industrial Average closed at 34,416.99, up 102.32 points (0.30%) from the previous day.
The Standard & Poor’s 500 Index closed at 4,363.55, up 17.83 points (0.41%) from the battlefield, and the Nasdaq, centered on technology stocks, closed at 14,501.91, up 68.08 points (0.47%) from the battlefield.
The previous day, the three major indices all rose to around 1% due to the rebound of technology stocks, and the index opened on a downward trend from the beginning of the day.
However, the mood changed during midday when news broke that the Republican Party had proposed a plan to defer the debt limit until December of this year.
Senate Republican Minority Leader Mitch McConnell said in a statement, “To protect the American people from the short-term crisis the Democrats have created, we are extending the debt ceiling to a fixed amount so that Democrats can, through normal process, maintain their current spending levels through December. We will allow it to pass,” he said.
As the deadline for exhaustion of emergency measures by the US Treasury Department is approaching on the 18th, if the application of the debt limit is postponed until December, the deadline for negotiations will increase again and the risk of default (default) this month is expected to disappear.
Private employment in September, announced before the opening, exceeded expectations, raising expectations for employment in the non-agricultural sector announced by the Ministry of Labor on the 8th.
If employment is stronger than expected, the Federal Reserve (Fed) is expected to taper asset purchases in the near future as scheduled.
According to the ADP National Employment Report, private sector employment increased by 568,000 in September from the previous month.
This was higher than the 425,000 expected by the Wall Street Journal (WSJ).
The figure for August was revised down to 340,000 from an increase of 374,000.
Private sector employment rose sharply with an increase of 882,000 in May, then recorded 740,000 in June, then decreased to 322,000 and 340,000 in July and August, and then returned to 56 in September. It looks like it has rebounded to a million people.
The 10-year Treasury yield traded near 1.52% amid continuing concerns over inflation.
The recent rise in oil prices has fueled concerns about inflation.
However, concerns over inflation eased somewhat as the price of West Texas Intermediate (WTI) fell nearly 2% on the news of an increase in crude oil inventories.
Among the 11 sectors by industry, energy, materials, and health-related stocks fell, while utilities, consumer staples, and real estate-related stocks rose by around 1%.
Among individual stocks, American Airlines and JetBlue’s shares fell more than 4% and 2%, respectively.
It was reported that Goldman Sachs had lowered its investment opinion on the two companies due to increased fuel costs.
Shares of data analytics firm Palantir rose more than 1% on news that the company had signed a contract with the US military.
New York stock market experts said October is usually a volatile month, and the market will remain volatile for the time being.
“October is moving up to its reputation as the most volatile month of the year,” LPL Financial’s Lian Detrick told CNBC.
According to the Chicago Mercantile Exchange (CME) FedWatch, the Federal Funds (FF) interest rate futures market reflected a 42.6% chance of a rate hike in September next year.
The probability of one rate hike is 34.6% and the probability of two rate hikes is 7.4%.
On the Chicago Board Options Exchange (CBOE), the Volatility Index (VIX) fell 0.30 points (1.41%) to 21.00.
/yunhap news
