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Entered2024.04.05 07:10 Modified2024.04.05 07:10
Dow Jones Industrial Average falls by the largest margin in a year
An employee at the New York Stock Exchange is working on the 5th (local time). Photo = REUTERS The New York stock market fell due to expectations of an interest rate cut.
On the 4th (local time) at the New York Stock Exchange, the Dow Jones Industrial Average ended trading at 38,596.98, down 530.16 (1.35%) from the previous trading day. This is the largest decline in one year since March 22 last year. The Standard & Poor’s (S&P) 500 index also closed at 5,147.21, down 64.28 (1.23%), and the NASDAQ closed at 16,049.08, down 228.38 points (1.40%).
A statement from a U.S. central bank (Fed) official that it may be difficult to cut interest rates this year put downward pressure on the index.
Minneapolis Federal Reserve Bank President Neel Kashkari, who is considered a hawk within the Fed (who favors monetary tightening), said on this day, “If inflation continues to trend sideways, we cannot help but question whether there is a need to cut interest rates,” raising market concerns about the possibility of the Fed turning hawkish. raised. Governor Kashkari evaluated the price index in January and February as “a little worrying” and pointed out that “rather than continuing to fall, it fluctuated sideways.”
After President Kashkari’s remarks, the three major New York stock market indices all took a downward turn.
The fact that the US employment report for March is scheduled to be released one day ahead on the 5th also served as a cautionary factor. According to Dow Jones, experts predicted that the increase in non-agricultural employment in the United States in March would be 200,000 compared to the previous month, down from February (275,000).
However, if employment growth continues through January and February and into March, it is expected that the Fed will have no choice but to take a cautious stance in lowering interest rates.
Geopolitical risks related to the Middle East also had a negative effect. There was panic in the Middle East as Iran pointed to Israel as the mastermind behind the bombing of the Iranian consulate in Syria and threatened strong retaliation. As a result, oil prices soared. On this day, oil prices reached their highest since October 2023. In May, Indian West Texas Intermediate (WTI) crude oil exceeded $86 per barrel, and Brent crude oil exceeded $90 per barrel.
By stock, Tesla rose by around 1%. Intel, which plunged the previous day after reporting an operating loss in the foundry (semiconductor consignment production) division, fell an additional 1% on this day. Nvidia fell in the 3% range, Amazon.com fell in the 1% range, and Alphabet A fell in the 2% range.
Noh Jeong-dong, Hankyung.com reporter dong2@hankyung.com
2024-04-04 22:10:31
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