Tesla rises over 4%
Coupang plunges 8%
Accounting error causes Plug Power to fall 7%
[Asia Economy New York=Special Correspondent Baek Jong-min] Major indices on the New York stock market closed higher with support from Federal Reserve (Fed) Chairman Jerome Powell. The Dow Jones Industrial Average closed above 33,000 for the first time ever, and the S&P 500 also reached an all-time high. The Nasdaq, which had been weak due to inflation concerns, turned bullish.
On the 17th (local time), the Dow Jones rose 0.58% to close at 33,015.37, the S&P 500 increased 0.29% to 3,974.12, and the Nasdaq rose 0.4% to 13,525.20.
On this day, the market showed mixed trends amid rising Treasury yields but turned upward following the FOMC meeting results and Chairman Powell's remarks.
Although U.S. Treasury yields surged again in the morning, creating a sense of crisis, the outcome was a "happy ending." After the FOMC event, Treasury yields fell back to the 1.63% range, and the stock market soared.
The Fed raised both its economic outlook and inflation forecasts but projected no rate hikes through 2023, restoring risk asset investor sentiment.
Chairman Powell stated that there would be no rate hikes until clear signals appear and that early tapering is premature, which expanded the stock market's gains.
Among individual stocks, Volkswagen's shares surged notably after declaring a transformation into an electric vehicle company. Volkswagen ADRs rose by as much as 30% on the day. The Volkswagen ADR had already gained 10% the previous day before extending its gains.
Volkswagen's shares listed on the German stock exchange also rose by 15%.
Bloomberg reported that Volkswagen surpassed software company SAP to become the largest company by market capitalization in Germany. Volkswagen secured the top spot in the German stock market, which it had lost six years ago due to the dieselgate scandal, by leveraging electric vehicles.
Thanks to the Volkswagen effect, Tesla, which had fallen over 4% the previous day, rebounded 3.6% on this day. Ford Motor Company rose 1.6%, and GM gained 5.1%.
The rebound in tech stocks was led by Amazon. Amazon's stock price rose 1.42%. In contrast, Apple fell 0.65%.
Coupang, the e-commerce company that went public last week, plunged 8.1% to $43.29. Coupang's IPO price was $35. During the day, Coupang's market capitalization, which had reached $100 billion, dropped to $74.2 billion.
Hydrogen fuel cell company Plug Power, whose business report release was delayed, saw double-digit losses during the day and closed down 7.85%. MarketWatch reported that the market took a relatively optimistic view of Plug Power's accounting errors.
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
