New York stocks ended mixed as concerns regarding early tightening by the US Federal Reserve continued.
The Nasdaq index rebounded following five trading days.
At the New York Stock Exchange (NYSE) on the 10th (Eastern Time), the Dow Jones Industrial Average closed at 36,068.87, down 162.79 points (0.45%) from the previous day.
The Standard & Poor’s 500 Index closed at 4,670.29, down 6.74 points (0.14%) from the previous day.
On the other hand, the Nasdaq index, centered on technology stocks, closed at 14,942.83, up 6.93 points (0.05%) from the previous market.
On the same day, the three major New York indices started falling all at once.
At the beginning of the market, the Nasdaq index plunged more than 2.7% and the Dow Jones Industrial Average fell more than 500 points.
Recognizing that the stock price has recently fallen sharply, low-price purchases have flowed in.
The Nasdaq index succeeded in a last-minute rebound on a low-price buy.
According to Dow Jones analysis, the intraday rebound of the Nasdaq was the largest since February 2020.
Concerns regarding the US Fed’s early tightening remain afloat.
The Fed is expected to raise interest rates as early as March this year.
Market participants initially expected three rate hikes within the year, but analysts believe the Fed might raise rates even faster than this.
US bank Goldman Sachs has predicted that the Fed will raise interest rates four times starting in March this year.
The so-called ‘quantitative tightening’, the balance sheet contraction, was expected to begin in July.
JPMorgan Chief Executive Jamie Dimon also expressed the view that the Fed might raise rates more significantly than market expectations.
He attended the JP Morgan Healthcare Conference on the same day and noted that as the U.S. economy is experiencing its biggest boom in decades, he would be surprised if interest rate hikes were “personally limited to four or so.”
However, he cautioned that the stock market might exhibit volatility due to rising interest rates.
According to the Chicago Mercantile Exchange (CME) FedWatch, the Federal Funds (FF) interest rate futures market has a 76.4% chance that the Fed will raise rates in March this year.
54.5% of participants expected the Fed to raise rates four or more times by the end of the year.
By the end of the day, the 10-year U.S. Treasury yield moved around 1.77%.
The yield on the 10-year Treasury bond broke through 1.8% during the day, but then gradually decreased.
Meanwhile, amid risk-averse sentiment, the price of Bitcoin fell below the $40,000 mark at one point during the day, falling to its lowest level since September last year.
Pfizer CEO Albert Bulla said a vaccine for the omicron mutation would be ready in March.
Stefan Bansel, CEO of Moderna, also said that a booster shot targeting the omicron mutation is expected to enter clinical trials soon.
In the New York Stock Exchange, industrial and materials-related sectors led the decline, dropping around 1%.
On the other hand, health-related stocks rose 1%, while technology stocks rebounded 0.1%.
Tesla closed 3.03% higher as Goldman Sachs picked Tesla as its top pick for this year and raised its target to $1,200.
Zynga surged 40% on news of a takeover from big game company Take2 Interactive.
Nike, on the other hand, fell 4% in the followingmath of HSBC’s downgrade.
Sports apparel company Lululemon Athletica also closed down nearly 2% on sluggish earnings forecasts.
Investors paid attention to comments from Fed members, including the US Consumer Price Index (CPI) for December released this week and the Senate hearing by Fed Chairman Jerome Powell.
Regarding the recent decline in the stock price, stock market experts have differing opinions.
Marco Kolanovic, chief strategist at JP Morgan, said: “The adjustment of risky assets in the followingmath of the December Federal Open Market Committee (FOMC) minutes is clearly excessive. informed investors.
On the other hand, Adam Crisapuli, founder of Vital Knowledge, said, “As technology stocks continue to be sluggish, cyclical stocks and value stocks are also being adversely affected. It had an impact,” he said.
On the Chicago Board Options Exchange (CBOE), the volatility index (VIX) recorded 19.40, up 0.64 points (3.41%) from the battlefield.
/yunhap news
