(Photo = Getty Image Bank)
In the New York Stock Exchange, major indices fell broadly last night as risk-averse sentiment continued.
On the 12th (local time) on the New York Stock Exchange (NYSE), the Dow Jones Industrial Average closed at 31,730.30, down 103.81 points (0.33%) from the previous day.
The Standard & Poor’s 500 Index closed at 3930.08, down 5.10 points (0.13%) from the battlefield, and the Nasdaq Index closed at 11,370.96, up 6.73 points (0.06%) from the battlefield.
The U.S. producer price index (PPI) rose 11% in April compared to the same period last year. This is down from the previous record of 11.5%, but still high.
Excluding food, energy and trade, the core PPI rose 0.6% in April. It was up 0.9% in the previous month. April core PPI is in line with market expectations. Core PPI rose 6.9% on a year-over-year basis, slowing from the revised 7.1% increase in the previous month.
After the producer price announcement, the yield on 10-year government bonds fell. The 10-year bond yield fell to 2.81% during the day. The yield on the two-year government bond also fell to the 2.5% level. Treasury bond prices rose due to growing concerns about an economic slowdown caused by inflationary pressures and the preference for safe assets from cryptocurrencies.
Seo Sang-young, a researcher at Mirae Asset Securities, said, “In the US stock market, as concerns about an economic downturn have risen due to high inflation, the overall investor sentiment has contracted due to a high preference for safe assets.”
Coinbase plunged 24% at one time as concerns about bankruptcy rose, but the CEO insisted there was no risk of bankruptcy and rose 12%, increasing volatility before closing 8.9%.
As Bitcoin fell, Tesla (-0.82%), Nvidia (-2.74%), and PayPal (-1.17%) continued their declines.
GM (-4.59%) and Ford (-3.04%) said that Wells Fargo will face serious cost problems when converting existing gasoline vehicles to electric vehicles. It was sluggish when it was downgraded.
As the government bond yield fell sharply, financial stocks such as JP Morgan (-0.08%) and BOA (-1.41%) showed weakness. Card sectors such as Visa (-1.21%) and Mastercard (-1.42%) also suffered sluggishness due to concerns about sluggish consumption due to high inflation.
Airlines sectors such as Delta Air Lines (-3.22%) and American Airlines (-3.01%) also fell on the news that air travel fell sharply in April due to high air fares.
Reporter Eunji Cha, Hankyung.com chachacha@hankyung.com
