[Asia Economy New York=Correspondent Baek Jong-min] As the results of the U.S. presidential election remain undecided, the New York stock market opened higher, led by technology stocks, but the mood is mixed. Safe-haven U.S. Treasury prices are also surging.
As of 9:40 a.m. local time on the 4th, the Dow Jones Industrial Average is up 0.47%, the S&P 500 is up 1.18%, and the Nasdaq is up 2.17%.
The Nasdaq's rise is particularly notable. Major tech stocks such as Apple, Amazon, and Facebook are all surging more than 3%. Meanwhile, electric vehicle maker Tesla's stock is down 0.3%.
The market is closely watching both the presidential and Senate election results. For now, the possibility of a 'Blue Wave,' where the Democratic Party wins the presidency and both houses of Congress, which was anticipated a day earlier, is considered low. This is due to the increased likelihood that the Republican Party will maintain a majority in the Senate.
Overnight, the futures market was highly volatile due to voting developments. When Democratic presidential candidate Joe Biden fell significantly behind President Donald Trump, Nasdaq futures reduced their gains, but as Biden began to catch up or overtake Trump in key battleground states, the gains expanded again.
The Wall Street Journal reported that although the market has taken an upward direction today, it may be overlooking concerns that governance could be difficult if Biden wins the presidency and Republicans control the Senate.
Bank stocks are plummeting. JPMorgan, Bank of America, Citigroup, Wells Fargo, and Goldman Sachs are all down between 3% and 5%.
MarketWatch reported that bank stocks are being hit as U.S. Treasury yields plunge. The 10-year U.S. Treasury yield is trading at around 0.77%, down 0.11% from the previous day. A drop in Treasury yields means a rise in Treasury prices. MarketWatch explained that investments are flowing into the safe-haven U.S. Treasuries.
The dollar value, which surged sharply when President Donald Trump took the lead in vote counting the previous day, is stabilizing. The dollar index, which shows the dollar's value against major currencies, is up 0.06% at 93.63. Overnight, it had surged to 94.25, boosted by Trump's strong performance.
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