[뉴욕증시]Soaring after a dive … Stock markets with higher volatility due to government bond yields

(Photo = AP / Yonhap News)

[뉴욕=이데일리 김정남 특파원] The New York stock market skyrocketed. Due to the flow of government debt yields, there was great volatility, such as a sharp drop at the start of the market and then spike again during the intraday.

According to Market Point on the 5th (local time), the Dow Jones 30 Industrial Average on the US New York Stock Exchange closed at 31,496.30, 1.85% more than the previous trading day. The Standard & Poor’s (S&P) 500 Index closed at 3,841.94, an increase of 1.95%. The NASDAQ index, which focuses on technology stocks, rose 1.55% to 12,920.15.

The stock market was restless even at the beginning of the market. All three indices slumped at the same time as the 10-year US Treasury rate soared to 1.626% on the intraday.

The strong employment indicators that came out before the open proved ineffective at the start of the market. According to the Labor Ministry, non-farm jobs increased by 379,000 last month. The biggest increase since October last year. The Dow Jones experts’ forecast (210,000 increase) also beat significantly.

Most of the job growth last month was in the leisure and hospitality industry (up 355,000). It is the industry most affected by Corona 19. It was found to employ 286,000 more people in restaurants and bars alone. It is possible to interpret that if the corona19 vaccine spreads through the United States and the number of confirmed cases gradually decreases, jobs will gradually recover if each state reopens the economy. The unemployment rate was 6.2%, 0.1 percentage points less than the previous month (6.3%).

However, as the rise in intraday government debt rates slowed, the green light material for the labor market stood out and all three indices rallied rapidly. Intraday volatility was that. In the case of the Dow Index, the difference between the intraday highs and lows exceeded 800 points.

It was also mentioned on this day that the Federal Reserve System (Fed) would not intervene directly in increasing government bond yields. St. Louis Fed Chairman James Bourd said: “The need to be more dove (we prefer monetary easing) is not now.” However, the public debt market was not as affected as the previous day. The stock market in general moved in line with the performance of public debt.

The Chicago Options Exchange (VIX) volatility index, also known as the Wall Street Fear Index, fell 13.69% to 24.66.

Stock markets in major European countries fell sharply. The FTSE 100 index of the London Stock Exchange in the United Kingdom closed at 6,630.52, 0.31% less than the previous trading day. The DAX 30 index of the German Frankfurt Stock Exchange fell 0.97%, while the CAC 40 Index of the French Paris Stock Exchange fell 0.82%.