[Condiciones del mercado de EE. UU.]Stock Rise, Fed Chairman Testimony – 10-Year Bond Yield Time Level 1.4%

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The US stock market on the 24th continued to grow. It was down in the morning, but it turned up after testimony before Congress from Federal Reserve Board (FRB) Chairman Powell. Powell reiterated his view that the economy needs support. Yields are rising in the US Treasury market Crude oil was also strong.

The S&P 500 stock index rose 44.06 (1.1%) from the previous day to 3,925.43. The Dow Jones Industrial Average averaged $ 424.51 (1.4%) higher at $ 31,961.86. The Nasdaq Composite Index was up 1%.

Although technology stocks were sold, the surge in energy and mining stocks pushed the S&P 500 up. Bank stocks were also bought and the KBW bank stocks index rose to the highest level since 2007. US Food and Drug (FDA)Johnson & Johnson’s new coronavirus vaccine is reported to be safe and effective. As a result, small-cap stocks also performed well. Tesla repels. Cathie Wood, head of hedge fund Ark Investment Management, saidIt was revealed that he bought Tesla stock with a squeeze.

　　Powell told the House Finance Committee that it will take a long time for the economy to peak employment and an outlook for inflation. He reiterated his position to continue with the mitigation policy. Investors in stocks are concerned about the expectation that economic activity and corporate earnings will rise after the convergence of the pandemic, and that rising interest rates will make investing in stocks less attractive.

“Powell’s statements are no different than in recent months,” said Matt Mayley, Miller Tabak’s chief market strategist. “Still, in response to his comment, investors were convinced that the US monetary authorities were still willing to help boost asset prices, so there was an aggressive buying on the contraction,” he said.

Risk awareness has grown stronger in the forex market and the currencies of resource-rich countries have reached their highest prices in three years. The New Zealand dollar rose especially against the dollar. The government has urged the central bank to establish policies with the housing market in mind. The US dollar was generally weak, but strong against the yen and the Swiss franc.

The Bloomberg Dollar Spot Index, which shows the movement of the dollar against the top 10 currencies, fell 0.2%. At 4:55 pm New York time, the dollar is 59 yen (0.6%) higher than the yen and the dollar is 105.84 yen. The euro was up 0.2% at $ 1.2170.

US Treasuries have been sold and the yield curve has tilted. In the morning sale phase, 10-year bond yields rose 9 basis points (bps, 1 bp = 0.01%) and 30-year bonds rose 11 bps, both record highs for the first time in about a year . Demand was weak for the afternoon five-year bond auction, but market reaction was relatively modest.

At 4:55 pm New York time, 10-year bond yields rose 3bps to 1.37%. The day rose to 1,434%, the highest level since February 2020.

The New York crude oil futures market rallied. The price was the highest since January of last year as the move spread to anticipate accelerating global inventory decline and recovery in demand. Weekly statistics from the Energy Information Administration (EIA) reveal that crude oil production has plummeted due to the effects of an unusual cold snap. Inventories at major European oil storage sites were at their lowest levels since September last year.

The April New York Mercantile Exchange (NYMEX) West Texas Intermediate (WTI) futures contract ends at $ 63.22 a barrel, an increase of $ 1.55 (2.5%). The April contract for Brent North Sea at London ICE has risen $ 1.67 to $ 67.04.

The spot market for gold continued to decline and, as of 3:04 pm New York time, was 0.5% lower than the previous day. Rising U.S. Treasury yields have reduced investment in interest-bearing gold. Gold-backed exchange-traded funds (ETFs) holdings are at their lowest since mid-2020.