Biden’s remarks support stock market rally
Tesla rose 5%… Large technology-led strength
photo = REUTERS
The New York Stock Exchange succeeded in rebounding amid easing concerns over Omicron, a new variant of the novel coronavirus infection (COVID-19).
On the 29th (local time) on the New York Stock Exchange (NYSE), the Dow Jones Industrial Average finished trading at 35135.94, up 236.60 points (0.68%) from the previous day. The Standard & Poor’s (S&P) 500 index rose 60.65 points (1.32%) to 4655.27, and the Nasdaq index, which focuses on technology stocks, finished the market at 15782.83, up 291.18 points (1.88%) from the battlefield.
The US stock market rose on the 26th, leaving behind concerns about the spread of Omicron and regaining stability. However, as concerns have not been completely resolved, there has been no rebound in the market as a whole, and industry differentiation has progressed. While large tech and semiconductor stocks gained strength, financial stocks weakened.
Investors last night focused on the rate of spread and lethality of the Omicron mutant, and the economic consequences of it.
Dr. Angelique Kuche of South Africa, who was the first to notify the health authorities of the new mutation, said in an interview with foreign media recently, “(Omicron symptoms) are unusual but mild.” This has alleviated concerns about Omicron, for which concrete data have not yet been released. It is judged that if only mild symptoms are present, the impact on the financial market will be smaller compared to the past delta-mutated virus.
Also, it was President Joe Biden’s remarks that actually drove the US stock market up. In a speech at the White House on the same day, President Biden said that cases of Omicron will soon occur in the United States. He said, however, that “Omicron is a cause of concern rather than panic” and that “no containment policy is being discussed.”
Tesla by stock(1,081.92 -3.05%)Large tech stocks, including Tesla closed 5.09% higher when it was announced that it would apply the giga press method to its German plant from December. nvidia(315.03 -3.58%)is up 5.95% as it highlights the company’s ability to maintain strong pricing power through next year. After the decline on the 26th, Microsoft(329.68 -2.44%)(2.11%), Apple(156.81 -3.17%)(2.19%), Alphabet(2,856.12 -2.67%)Large tech stocks such as (2.35%) and Amazon (1.63%) showed strength due to the inflow of buying power.
On the other hand, JP Morgan and Bank of America(45.76 -3.93%)Financial stocks such as (BOA) have not recovered from the aftermath of the Omicron despite rising government bond yields. They fell 0.43% and 0.37%, respectively.
Shin Min-kyung, reporter at Hankyung.com radio@hankyung.com
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