[Asia Economy New York=Correspondent Baek Jong-min] The New York stock market turned weak a day after a sharp rebound. Although the bond yields that had unsettled the market declined, analysis suggests that anxiety still lingers in the market.
On the 2nd (local time), the Dow Jones Industrial Average fell 0.46% to close at 31,391.52, the S&P 500 dropped 0.81% to 3,870.29, and the Nasdaq fell 1.69% to 13,358.79.
Near the close, the downward trend spread across all major indices. The Dow, which had recorded gains early in the session, also reversed to a decline. The Nasdaq’s losses widened just before the market closed.
The Wall Street Journal reported that despite the large rebound the previous day, market instability based on rising bond yields is hampering investor sentiment.
On the day, the 10-year U.S. Treasury yield recorded 1.421%, continuing its decline from 1.444% the day before. Nevertheless, compared to around 0.9% at the beginning of this year, U.S. Treasury yields remain more than 50% higher.
Federal Reserve (Fed) officials focused on easing inflation concerns on the day as well.
Fed Vice Chair Lael Brainard emphasized, "We have not reached our goals. The U.S. labor market is still declining."
She also noted that inflation is below the Fed’s 2% target and indicated that an exit strategy would only be implemented after inflation significantly exceeds 2%.
Vice Chair Brainard also stressed that "we are closely monitoring movements in the Treasury market," suggesting the possibility of measures to address rate hikes at the upcoming Federal Open Market Committee (FOMC) meeting this month. The market expects the Fed may pursue a decline in long-term yields through an 'Operation Twist.'
Mary Daly, President of the Federal Reserve Bank of San Francisco, also said, "Our important virtue is patience," ruling out the possibility of an early rate hike.
The market is also paying close attention to any remarks from Fed Chair Jerome Powell scheduled for April 5.
By individual stocks, Zoom, which reported earnings, plunged 9%. Apple and Tesla also showed significant declines of 2% and 4.4%, respectively.
April West Texas Intermediate (WTI) crude oil prices fell below $60. WTI closed down $0.89 (1.5%) at $59.75 per barrel. This is the first time WTI has fallen below $60 since February 19.
April gold prices rose $10.60 (0.6%) to close at $1,733.60.
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