(New York=Yonhap News) Yoon Young-sook, Yonhap Infomax Correspondent = New York Stock Market rose as 10-year treasury interest rates were somewhat stable and low-cost purchase tax inflows continued.
As of 10: 07 A.M. on the 9th(U.S. Eastern Time), the Dow Jones 30 Industrial Average index on the New York Stock Exchange(NYSE)was 35,763.15, up 300.37 points(0.85%) over the previous year.
The Standard&Poor’s(S & P)500 Index rose 50.57 points(1.12%) to 4,572.11, while the tech-focused Nasdaq index jumped 179.43 points(1.26%) to 14,373.88.
Major indexes rose, with low-cost buying in the meantime due to tightening concerns from the Federal Reserve(Fed).
The Nasdaq Index is down more than 11% from its November high last year, and the S&P500 index is down more than 5% from its January high. The dow fell more than 3% from its January high.
However, investors were on the lookout for the Consumer Price Index(CPI)to come out the next day, watching the remarks of FED officials and the move in treasury interest rates. Corporate performance is also affected by individual stocks.
U.S. 10-year treasury rates fell once more, trading at 1.92%. The decline in interest rates was somewhat of a relief for stocks, having fallen from the previous day’s rise to 1.97%.
However, investors are watching the CPI announcement to see whether 10-year interest rates will break through 2%. The steep rise in treasury interest rates is expected to act as downward pressure on technology stocks and growth stocks.
The Fed’s monetary policy-sensitive two-year treasury rate rose once more to 1.352%. This is the highest since February 2020.
Rafael Bostic, Governor of the Federal Reserve Bank of Atlanta(Yeon Eun), told CNBC earlier in the day that he expected three or four rate hikes this year.
“With regard to raising interest rates, I’m currently forecasting three hikes,”Bostic said, “but we’re slightly biased towards four (raising interest rates), but we’ll have to see how the economy reacts following the first (raising interest rates) step.”
Bostic explained that he was mindful of a 25bp hike, meaning that the Fed is keeping all possibilities open to the possibility of raising the benchmark interest rate by 50bp at a time.
The market is reflecting the possibility of raising interest rates five times this year in prices.
Investors are also keeping an eye on companies ‘ earnings releases.
Chipole shares rose more than 6% on the news that the company’s net profit exceeded expectations.
CVS Health’s shares fell more than 3% on news that its quarterly net profit and revenue exceeded expectations.
Lift shares fell more than 1% on the news that earnings exceeded expectations, while active driver figures were below expectations.
Shares of Yum Brands, the parent company of KFC and Pizza Hut, rose more than 4%, with net profit below expectations, but sales improved more than expected.
This day, Uber and Walt Disney will release quarterly results, respectively, following the chapter closes.
All 11 sectors in the S&P500 index rose.
New York City experts have diagnosed that the stock market is still watching tightening, inflation concerns, and the resulting rise in interest rates.
“Optimism over the resumption of the economy is contributing to improving sentiment, but hawkish fed expectations and rising interest rates continue to pose a major threat to stock prices,”Swisquart analyst Ypek Ozkadeskaya told Marketwatch.
In other words, the boundaries of the market are maintained in that the factors that triggered the surge in bond interest rates(the decline in bond prices)have not been eliminated.
“All market participants are trying to gather more information regarding how global central banks will make policy changes,”ING’s head of Global Macro Research, Carsten Brzeski, told the Wall Street Journal, “and there is a question regarding how the stock market will adapt to this new normal.”
European stocks rose in unison.
The German DAX index rose 1.66 percent, and the British FTSE100 Index rose 0.96 percent. The STOXX600 index, a pan-European index, is up 1.73%.
International oil prices all rose.
The price of West Texas crude Oil(WTI) in March rose 0.46% to $ 89.77 per barrel, while the price of Brent crude oil in April rose 0.62% to $ 91.34 per barrel.
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