New York Stock Market 'Rally' on Stable Treasury Yields... Energy Strength and Electric Vehicle Weakness (Summary)

[Asia Economy New York=Correspondent Baek Jong-min] The New York stock market fluctuated due to the sharp rise and fall in government bond yields following the 'surprising' strength of employment data, but ended the week with a significant gain.

[Image source=Reuters Yonhap News]

On the 5th (local time), the Dow Jones Industrial Average rose 572.16 points (1.85%) to close at 31,496.30, the S&P 500 index surged 73.47 points (1.95%) to 3,841.94, and the Nasdaq index gained 196.68 points (1.55%) to finish at 12,920.15.

On a weekly basis, the Dow rose 1.8%, the S&P 500 increased 0.8%, but the Nasdaq fell about 2.1%.

On that day, the major New York stock indices were linked to the employment data release and the resulting sharp fluctuations in government bond yields.

Before the market opened, the Department of Labor announced that employment increased by 379,000 in February. The news of a job increase 160,000 more than the market expectation of 210,000 pushed the U.S. 10-year Treasury yield up to 1.62%.

Due to the burden of rising bond yields, major index futures all fell in pre-market trading, but during regular trading hours, expectations for economic recovery were highlighted, leading to gains centered on the Dow. The Nasdaq, which is heavily affected by rate concerns, fell as much as 2.5% at one point.

Afterward, as the Treasury yield dropped to around 1.57%, the stock market quickly expanded its gains.

Energy stocks were uniformly strong, supported by rising oil prices. On that day, the April contract for West Texas Intermediate (WTI) crude oil closed up $2.26 (3.5%) at $66.09 per barrel. WTI rose about 7.5% this week.

Electric vehicle maker Tesla continued to face selling pressure, closing down 3.78% at $597.95. Tesla's stock price fell as much as 6% during the session, reaching $539.

Chinese electric vehicle maker Nio's stock also dropped 2.98%, highlighting the decline in electric vehicle stocks.

The ARK Innovation ETF, which focuses heavily on innovative stocks including Tesla, fell another 1% despite the Nasdaq and tech stock rally. This was attributed to its large holdings of Tesla.