[ad_1]
On the New York Stock Exchange, major indices rose as US employment indicators were good and government bond yields were limited.
At the fifth (US time) on the New York Stock Exchange (NYSE), the Dow Jones 30 industrial average closed at 31,496.30, an increase of 572.16 points (1.85%) from the battlefield.
The Standard & Poor’s (S&P) 500 Index soared 73.47 points (1.95%) from the battlefield to 3,841.94, while the NASDAQ index oriented to tech stocks closed at 12,920.15, an increase of 196. , 68 points (1.55%).
The Dow index rose about 1.8% this week.
The S & P500 index rose 0.8%, while the Nasdaq fell about 2.1%.
The market watched key indicators such as employment and the movement of US Treasury yields.
Employment indicators were much better than expected, reinforcing confidence in the economic recovery.
The US Department of Labor announced in February that employment in the nonfarm sector increased by 379,000.
It was more than the market estimate of 210,000 people augmented by the Wall Street Journal.
In January, employment also increased from 49,000 to 166,000.
The unemployment rate also fell to 6.2% from 6.3% last month.
It was lower than the market forecast of 6.3%.
Employment in the leisure and hospitality sector, which was slow due to the new coronavirus infection (Corona 19), has increased by more than 350,000.
The economic resumption following the deceleration of the crown 19 is bringing warmth to the labor market.
Considering the greater openness of the economy in the future, expectations have risen that employment will increase rapidly.
Although employment was good, the rise in US Treasury yields was limited, providing relief to the market.
The 10-year US Treasury rate rose to 1.62% immediately after the employment index was released.
However, it then gradually decreased and fell back to the mid-range of 1.5%.
The main indices were also unstable at the beginning of the market due to the increase in interest rates, but they recovered quickly as interest rates fell below the level.
Comments continued that the Federal Reserve System (Fed and Fed) would not respond directly to rising interest rates.
“The need for us to become more pigeon is not now,” said James Bourd, president of the Federal Reserve Bank of St. Louis. “Currently, Operation Twist is not considered an option.”
Jerome Powell, chairman of the Federal Reserve System (Fed), did not clearly reveal his willingness to curb the rise in bond yields, contrary to market expectations the day before.
However, even with the governor’s comments, the interest rate on this day did not vary much.
Although stock indices ended abruptly, intraday volatility remained.
The difference between the highs and lows of the Dow index exceeded 800 points.
The Nasdaq crashed more than 2.5% of the battlefield at a time during the day.
The $ 1.9 trillion stimulus package being debated in the Senate is progressing smoothly with some revisions.
The Senate amended the bill by reducing the amount of additional unemployment insurance assistance from $ 400 per week to $ 300 per week, but extending the period of assistance by about one month.
The Senate is also expected to pass a stimulus bill sooner or later.
Upon completion of the Senate resolution, the bill goes through the House voting process again.
By industry, technology stocks rallied 1.97% on the same day, with all sectors on the rise.
Energy was up 3.87% on rising oil prices, and industry leaders were up 2.39%.
Other economic indicators released this day were somewhat slow.
The US Department of Commerce announced that the trade deficit in January was $ 68.2 billion, an increase of 1.9% from the previous month.
It was more than the market forecast of $ 66.7 billion.
The Fed announced in January that consumer credit (seasonally adjusted, excluding home loans) fell $ 1.3 billion from a year earlier.
The annual rate decreased 0.4%.
Experts on the New York stock market assessed that sinking interest rates, despite strong employment, boosted the stock market.
Gregory Paranello, head of US interest rates at Aberibetsu Securities, said: “Today’s employment indicators confirmed that the economy will generally reopen.” “This has provided support to the equity and credit markets.”
According to Fedwatch of the Chicago Commodity Exchange (CME), the FF interest rate futures market reflected the possibility of a base rate hike of 25 bp in September by 4.0%.
On the Chicago Options Exchange (CBOE), the volatility index (VIX) registered 24.66, 13.69% less than the previous trading day.
/ yunhap news
