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New York Stock Markets Strong in Signing Moderate Prices and Stimulus Measures… S&P closes up 0.6%

(New York = Yonhap News) Correspondent Oh Jin-woo, Yonhap Infomax = In the New York stock market, the leading indexes were strong thanks to the moderate US price index and the conclusion of new stimulus measures. Only the Nasdaq index, centered on technology stocks, fell slightly.

On the 10th (US time) on the New York Stock Exchange (NYSE), the Dow Jones 30 Industrial Average closed at 32,297.02, up 464.28 points (1.46%) from the battlefield.

The Standard & Poor’s (S&P) 500 index closed at 3,898.81, up 23.37 points (0.6%) from the battlefield, while the Nasdaq closed at 13,068.83, down 4.99 points (0.04%).

The Dow index hit a record high in terms of intraday and closing prices.

The market watched the US price index, government bond yield trends, and news of the conclusion of new stimulus measures.

The US Consumer Price Index (CPI) for February rose to market expectations.

The Ministry of Labor announced that the CPI for February rose 0.4% from the previous month. It was in line with expert forecasts compiled by the Wall Street Journal (WSJ). Compared to the previous year, it rose 1.7%, consistent with the market forecast.

Excluding volatile food and energy, the core CPI rose 0.1% MoM in February. The market forecast was also up 0.1%. The core CPI rose 1.3% YoY, which is the market’s expected level.

The recent surge in US Treasury bond yields amid massive stimulus measures and concerns about inflation amid economic resumption has made the stock market unstable. As such, investors were relieved by the expected level of inflation.

The U.S. Treasury’s 10-year Treasury bid result was okay. The bid rate was 2.38 times, almost the same as the previous 2.37 times. It is not a strong result, but it is evaluated that it was not at a level that could stimulate concerns about demand, like last month’s 7-year bidding.

As a result of moderate inflation and not bad bidding, the 10-year Treasury bond yield fell to the early 1.5% range.

However, there is still caution that inflation will increase from March, when the base effect of last year’s pandemic shock is fully reflected. Jeffrey Gundlock, CEO of Doubleline Capital, a leading Wall Street investor, pointed out that the CPI could exceed 4% after a few months.

The news of the conclusion of the stimulus package provided additional momentum for sensitive stocks.

The US House of Representatives finalized a $1.9 trillion stimulus bill on the same day. President Joe Biden is due to sign the bill on Friday.

Positive news has also been added regarding the novel coronavirus infection (Corona 19) vaccine. The US government plans to purchase an additional 100 million doses of vaccine developed by J&J.

Meanwhile, in the stock market on this day, the movement of funds from technology stocks to economically sensitive stocks was also evident again.

The Nasdaq, which soared about 3.7% the day before, showed an unstable trend of fluctuations during the intraday despite the fall in US interest rates. At the end of the market, it turned slightly lower.

By industry on this day, all industries rose except for the fact that technology stocks fell 0.4%. The material sector rose 1.64%, and the industrial market rose 1.45%.

New York stock market experts expressed relief with the moderate inflation index.

National Securities’ Art Hogan said, “The market’s biggest concern since last month was that inflation could be overheating than expected.”

According to the Chicago Merchandise Exchange (CME) Fed Watch, the FF interest rate futures market was 25bp in September.
We reflected the possibility of a rate hike by 11.6%.

On the Chicago Options Exchange (CBOE), the volatility index (VIX) fell 6.12% from the previous trading day to 22.56.

jwoh@yna.co.kr

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