[한국강사신문 한상형 기자] According to Yonhap News, the New York stock market continued to rise as technology stocks continued to rise.
On the 8th (US eastern time) on the New York Stock Exchange (NYSE), the Dow Jones Industrial Average 30 closed at 33,833.61, up 168.59 points (0.50%) from the battlefield.
The Standard & Poor’s (S&P) 500 Index rose 26.41 points (0.62%) from the battleground to 4,293.93, and the Nasdaq Index finished trading at 13,238.52, up 133.63 points (1.02%) from the battleground.
The S&P 500 Index hit another high since August last year.
Bull momentum for technology stocks was maintained despite the absence of materials ahead of the regular Federal Open Market Committee (FOMC) meeting scheduled for next week.
In particular, analysts’ positive outlook for Amazon, a major technology stock, continued.
Wells Fargo maintains its ‘market outperform’ rating, equivalent to a buy, and selected Amazon as its ‘top pick’ stock. The reason for this is that the profit inflection point is expected to come sooner than expected. The price target is set at $159.
UBS also issued a ‘buy’ rating on Amazon, noting outperformance on Amazon Web Services, and raised its target price from $130 to $150. Amazon’s stock price rose more than 2%.
The fact that Tesla stock has risen more than 4% for 10 consecutive days also contributed to the strength of technology stocks.
Tesla’s share price rose on expectations of the Cybertruck that day. According to data the company sent to suppliers, Tesla plans to produce 375,000 Cybertrucks a year, with the first batch of applicants expected by the end of August.
However, investors remain cautious as they await the regular FOMC meeting scheduled for next week.
The surprise interest rate hike by the Reserve Bank of Canada the previous day raised concerns that the Federal Reserve System (Fed) could take an unexpected step. Earlier in the week, the Reserve Bank of Australia also raised interest rates by 0.25 percentage points, contrary to market expectations.
A large increase in the number of people claiming unemployment insurance suggests that the job market is gradually slowing down.
The number of new unemployment insurance claims in the United States last week was 261,000, an increase of 28,000 from the previous week.
This is the biggest increase in about 20 months since the week ending October 30, 2021, and is higher than the 235,000 expected by experts compiled by The Wall Street Journal (WSJ). Treasury yields fell on news of rising unemployment.
The market is also paying attention to the fact that small cap stocks have rebounded quickly recently. The Russell 2000 index rose more than 7% in June alone. This is because confidence in the economic recovery has increased as the US economy has shown a stronger than expected performance. However, the Russell 2000 index fell slightly on the day.
In the S&P 500, consumer discretionary, technology, consumer staples, health and utilities stocks rose, while real estate, energy and materials stocks fell.
GameStop’s share price fell about 18% on the news that CEO Matthew Furlong had been fired and board chairman Ryan Cohen had been appointed chairman.
Lucid shares rose more than 1% on news that the company plans to sell vehicles in China.
Shares of used car dealer Cabana surged 56% as they expect unit gross profit to exceed $6,000 in the second quarter of this year, up more than 60% from the same period last year. Previous forecasts were higher than $5,000.
Share prices of casino operators Las Vegas Sands and Wynn Resorts fell 1% and 0.2%, respectively, on news that Jeffries had downgraded his investment views on both stocks from ‘buy’ to ‘hold’ and lowered the target price , respectively.
New York stock market experts said they would have to wait until next week’s FOMC meeting. However, it is worth noting that small- and mid-cap stocks are rebounding, with a focus on cyclical and value stocks.
BD8 Capital Partners CEO Barbara Doran told CNBC: “We’re in a news vacuum right now. Earnings are being made, debt ceilings are out, and we’re waiting for the Fed meeting next week.” It is expected to be, but what the guidance will be, what the CPI will come out on Tuesday and what the Producer Price Index (PPI) will be that comes out the next day is going to be very important.”
“For those concerned about the rally narrowing, value stocks and cyclical stocks, which have fallen more relatively, are showing some rotation,” said Ross Mayfield, investment strategy analyst at Baird. “It’s a very healthy movement in general.”
He said the Fed “could be a little more comfortable with a delay in June so that it has a lot of options in July and beyond.”
According to the Chicago Mercantile Exchange (CME) FedWatch, at the end of the federal funds interest rate (FF) futures market, the probability that the Fed will keep rates unchanged at its June meeting is 73.6%, and the probability of raising rates by 0.25 percentage points is 26.4%.
The Chicago Board Options Exchange (CBOE) Volatility Index (VIX) recorded 13.65, down 0.29 points (2.08%) from the battlefield. This is another record low since early 2020.