The New York Stock Exchange closed more than 300 points on Friday (March 4), pressured by US Treasury yields that jumped above 1.5 percent after Federal Reserve Chairman Jerome Powell. The Fed warns that the US may face inflation after opening the economy.
The Dow Jones Industrial Average closed at 30,924.14, down 345.95, or -1.11%, while the S & P500 closed at 3,768.47, 51.25, or -1.34%. The Nasdaq closed at 12,723.47, down 274.28, or -2.11%.
Powell said: The return of the US economy After the relaxation of the lock down measures Will cause inflation to rebound Powell, meanwhile, voiced concerns about volatility in bond markets and tight financial tightness affecting Fed targets. Powell, however, did not signal a measure to curb the resulting volatility. Up in the bond market Which is a huge disappointment for investors
Powell’s inflation warnings also sent the 10-year US Treasury yield up above 1.5 percent overnight, putting pressure on the trading climate in the market. This is because the 10-year US government bond is the reference bond used to determine the global bond’s price. This includes the mortgage loan interest rates. If government bond yields rise It will expose consumers and businesses to higher costs of debt repayment.
Tech stocks, which are interest rate-sensitive, dropped sharply. Micron Technology shares fell 5.36 percent, Intel shares were down 2.92 percent, Nvidia shares fell 3.39 percent, Apple shares were down 1.58 percent, Netflix shares were down 1.81 percent.
Energy stocks jumped after WTI crude prices soared more than 4 percent, with ExxonMobil shares up 3.87 percent, Chevron shares up 0.88 percent, Conoco Phillips shares up 3.65 percent. Chial Petroleum jumped 4.33%.
The bright US economic data was the driving force behind the market during the day. The US Department of Commerce said. U.S. factory orders jumped 2.6 percent in January, higher than analysts had expected a 2.1 percent gain, driven by a spike in consumer electronics orders.
The US Department of Labor revealed the number of first-time jobless benefits applicants at 745,000 last week. Which is lower than analysts had forecasted at 750,000.
Investors keep an eye on the progress of the US economic stimulus package. The US House of Representatives voted in favor of the $ 1.9 trillion stimulus package over the weekend. And it is now in the Senate hearing. Before sending it to President Joe Biden signed the endorsement into law.
Investors are also waiting to see the US February non-farm employment figures, which the Labor Department is due to release today. While analysts predicted that February employment numbers will increase by 210,000.
– .
