Nasdaq Rises 3% on Eased Interest Rate Concerns... S&P 500 Hits 9-Month High (Update)

[Asia Economy New York=Correspondent Baek Jong-min] As concerns over a sharp rise in U.S. Treasury yields eased, the New York stock market showed a significant surge in the first trading day of March.

[Image source=Yonhap News]

On the 1st (local time), the Dow Jones Industrial Average rose 1.95% (603.14 points) to close at 31,535.51, the S&P 500 index increased 2.38% (90.67 points) to 3,901.82, and the Nasdaq index climbed 3.01% (396.48 points) to finish at 13,588.83.

All major indices surged together, reflecting expectations of economic recovery as well as a rebound in the Nasdaq, which had been hit by rising Treasury yields. Overall, risk asset investment sentiment in the market eased.

The S&P 500 posted its largest gain since June last year. Only 38 stocks within the S&P 500 declined on the day.

The Nasdaq's recovery was also notable after a significant 4.9% correction last week. Apple surged 5.4%, and Tesla jumped 6.4%.

On the day, the 10-year U.S. Treasury yield fell to 1.44%, down from 1.459% at the end of last week. During the session, it even dropped to 1.33%. Although volatility in yields remains high, the market widely perceived that the upward trend had been halted.

The U.S. Treasury yields declined despite news such as Johnson & Johnson’s emergency use authorization for its COVID-19 vaccine, which could stimulate inflation, and the U.S. House of Representatives sending a $1.9 trillion stimulus package to the Senate. A drop in Treasury yields means bond prices rose.

Economic indicators released on the day remained strong. The Institute for Supply Management (ISM) reported that the February manufacturing PMI rose sharply to 60.8 from 58.7 in January, surpassing experts’ expectations of 58.9.

Oil prices fell on expectations of increased production. The April West Texas Intermediate (WTI) crude oil price closed down $0.86 (1.4%) at $60.64 per barrel.