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March 6, 2021
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The ‘Dow’ closes on Friday. (March 5) was up 572 points after the opening session, dropping more than 100 points under pressure from a rally in US government bond yields. After the release of stronger employment figures than expected.
The Dow Jones Industrial Average rose 572.16 points, or 1.9%, to 31,496.30 points. The 500 rose 2% to 3,841.94 points, the NASDAQ index gained 1.6% to close at 12,920.15 points.
The Dow fell early. After the US Department of Labor reported that the number of non-farm jobs increased by 379,000 in February. Higher than analysts had predicted, an increase of 210,000.
The unemployment rate fell to 6.2 percent in February, below what analysts had expected to stabilize at 6.3 percent.
However, 10-year US Treasury yields soared above 1.6%, reaching the highest level this year. After the disclosure of said employment number
The US 10-year bond is the benchmark bond used to determine the global bond price. This includes the interest rates on home loans. And US auto loan interest rates that if government bond yields go up It will cut money on consumer spending. As the cost of paying interest on the loan increases. And companies will face higher costs for debt repayments. This will make these companies reduce their investment. And reduce the payment of dividends to investors.
There are also concerns that a rally in US Treasury yields will reduce the attractiveness of investing in stocks. Causing investors to turn to the bond market
Markets are keeping an eye on the progress of US economic stimulus measures The US House of Representatives voted in favor of the $ 1.9 trillion stimulus package over the weekend. And now he’s in the Senate hearing. Before sending it to President Joe Biden signed the endorsement and signed it into law.
Mrs. Nancy Pelosi, Speaker of the US House of Representatives The stimulus approval process is expected to be finalized before March 15, when measures to help unemployment affected by COVID-19 will expire.
