[Asia Economy New York=Correspondent Baek Jong-min] The major indices of the New York stock market all showed strong gains, hitting new highs once again. While expectations for economic stimulus were positively reflected in the stock market, concerns about inflation also caused U.S. Treasury yields to surge.
On the 8th (local time), the Dow Jones Industrial Average rose 237.52 points (0.76%) to close at 31,385.76, the S&P 500 index increased by 28.76 points (0.74%) to 3,915.59, and the Nasdaq index gained 131.35 points (0.95%) to finish at 13,987.64.
The S&P 500 and Nasdaq set new records for the third consecutive trading day. The Dow also showed clear strength, rising for six consecutive trading days.
The driving force behind the New York stock market rally is analyzed to be the increased likelihood of a $1.9 trillion economic stimulus package passing through Congress.
One day earlier, Treasury Secretary Janet Yellen projected that if the stimulus bill passes as originally planned, full employment levels could be restored by 2022, which is also interpreted as having stimulated investor sentiment.
Apple, despite announcing the suspension of its autonomous vehicle development collaboration with Hyundai Motor, closed slightly higher by 0.11% after initially showing a decline at the market open.
Tesla rose 1.31% following the announcement of a $15 billion Bitcoin purchase.
Oil stocks showed strength as ExxonMobil rose 4.3% on news that Brent crude oil from the North Sea surpassed $60 during the session. On the day, March delivery West Texas Intermediate (WTI) crude oil closed at $57.97 per barrel, up 2% ($1.12) from the previous trading day.
Delta Air Lines and American Airlines rose 5.1% and 3.4%, respectively, on news that the Democratic Party is considering a $14 billion payroll support package.
Expectations for large-scale economic stimulus also lifted safe-haven assets such as gold and silver. April delivery gold closed at $1,834.20 per ounce, up 1.1% ($21.20). Silver also showed gains in the 1% range.
Meanwhile, the yield on the 30-year U.S. Treasury bond surpassed 2% during the session, reflecting the large-scale economic stimulus. A rise in Treasury yields means a decline in bond prices.
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