Mixed Dow and Nasdaq amid Rising U.S. Treasury Yields (Comprehensive)

[Image source=Reuters Yonhap News]

[Asia Economy New York=Correspondent Baek Jong-min] The rise in U.S. Treasury yields and the passage of a stimulus bill split the directions of the Dow Jones Industrial Average and the Nasdaq Composite in the New York stock market.

On the 8th (local time), the Dow closed at 31,802.44, up 0.97% from the previous day, the S&P 500 fell 0.54% to 3,821.35, and the Nasdaq dropped 2.41% to 12,609.16.

The Dow recorded an intraday all-time high reflecting expectations for the $1.9 trillion stimulus package passed by the Senate over the weekend, but technology stocks plunged, causing the S&P 500 and Nasdaq to show weakness.

Apple fell sharply by 4.1% that day. Although Apple, the largest company by market capitalization, dropped significantly, the Dow showed strength. Disney rose 6% on news of its theme park reopening. Among the 30 stocks included in the Dow, only five declined, including four technology stocks.

The Nasdaq market was once again hampered by rising Treasury yields. Although the Nasdaq managed a rebound in last week's final trading session, it attempted an intraday recovery but instead saw a deeper decline that day.

Electric vehicle maker Tesla fell 5.4%, lowering its recent lows further. After entering the $500 range for the first time in three months last week, it moved away from the $600 level.

The U.S. 10-year Treasury yield surged above 1.6% before the market opened, then dropped to the 1.5% range, but eventually rose back to the 1.6% level.

Although Treasury Secretary Janet Yellen stated that inflation concerns were excessive, she could not prevent the rise in Treasury yields.

Along with Treasury yields, the dollar index rose to 92.43, recovering to levels last seen at the end of November last year. The rise in the dollar index indicates an increase in the dollar's value.

Among individual stocks, GameStop surged 40% on news that founder Ryan Cohen was appointed to the board of directors.

Along with the strong dollar, gold prices fell again. Gold dropped 1.2% to $1,677.60 per ounce.

April West Texas Intermediate (WTI) crude oil prices closed down $1.04 (1.6%) at $65.05 per barrel.