[뉴욕 샌프란시스코=뉴스핌]Correspondents Kim Geun-cheol and Kim Na-rae = The US stock market fell on the 18th (local time).
On the New York Stock Exchange (NYSE), the Dow Jones Industrial Average closed at 34,411.69, down 39.54 points (0.11%) from the previous day. In addition, the S&P 500 index, which focuses on large-cap stocks, fell 0.90 points (0.02%) to 4391.69, and the Nasdaq Composite Index, which focuses on technology stocks, fell 18.72 points (0.14%) to 13,332.36.
The stock market fluctuated according to bond yields. The yield on the 10-year U.S. Treasury rose 5.4 basis points to 2.8620%. It broke once more the highest level in three years on fears of US inflation, and rose to 2.88% at one point during the day and then eased slightly. The yield on the two-year bond, which is sensitive to monetary policy, rose 2.3 basis points to 2.4670.
Higher Treasury yields are the worst hit for tech stocks. This is because higher long-term bond yields reduce the value of future earnings. As a result, the Nasdaq fell 9% from the March 29 to April 14 close. During the same period, the 10-year Treasury bond yield rose by 2.4%.
On the same day, the World Bank (WB) significantly lowered its global economic growth forecast for this year to 3.2% from the previous 4.1%, which also weighed on the market. This was down by regarding 1 percentage point as the economy was hit by the Russian invasion of Ukraine.
| Wall Street New York Stock Exchange (NYSE) trader [사진=로이터 뉴스핌] |
The market is now paying attention to whether the earnings season can be a catalyst for the stock price to rise. According to Credit Suisse, the S&P 500’s first-quarter earnings reports to date have beat expectations by 8.7%. However, so far the earnings report has not been helpful. According to Wells Fargo, companies that outperformed their estimates outperformed the S&P 500 by 0.4 percentage points in average daily share price movements following earnings. On the other hand, the companies that fell short of expectations fell short of their earnings by 2.9 percentage points.
About 15% of the total market cap of the S&P 500 is due to report earnings this week alone. Tesla (TSLA), Netflix (NFLX) and Johnson & Jones (JNJ).
“This week is going to be an important time for the stock market,” said Ryan Belanger, president and founder of wealth management firm Claro Advisors.
“The start of the earnings season did little to change the story of the market last week,” said Chris Larkin, trading director at Etrade. “he said.
By stock, Twitter (TWTR) is up 5.3% following Twitter’s board of directors invoked a poison pill once morest Musk. Bank of America (BAC) shares rose 3.19% on better-than-expected earnings.
International oil prices rose on the news that protesters broke into Libya’s state-owned oil facilities and disrupted oil production, raising concerns regarding supply. Concerns regarding continued Western sanctions on Russia also fueled oil prices. On the New York Mercantile Exchange, the price of West Texas Intermediate (WTI) for May futures ended at $108.21 per barrel, up $1.26 (1.2%) from the previous day.
The safe-haven asset, gold, rose. On the New York Mercantile Exchange, gold for June delivery rose 0.6% to close at $1986.40 an ounce. This is the highest since March 10.
The US dollar rose. In the dollar index (dollar index), which shows the value of the dollar once morest six major currencies, the dollar index rose 0.49% from the battlefield, and the euro/dollar exchange rate fell 0.31% to $1.0781.
