National bond yields rise to 1.77% intraday
Coupang rises another 6%
Tesla rebounds over 4%
Ikegos block deal impact minimal
[Asia Economy New York=Correspondent Baek Jong-min] The sharp rise in U.S. Treasury yields once again weighed on the New York stock market. Some analysts say the market was in a cautious stance ahead of the first-quarter earnings report and the U.S. government's infrastructure investment plan announcement, both scheduled for the next day.
On the 30th (local time), the Dow Jones Industrial Average fell 104.41 points (0.31%) to close at 33,066.96, the S&P 500 index dropped 12.54 points (0.32%) to 3,958.55, and the Nasdaq index slipped 14.25 points (0.11%) to 13,045.39.
The surge in U.S. Treasury yields that began before the market opened pressured the stock market. Investors' attention was also drawn to the Biden administration's infrastructure investment plan scheduled for the next day and the potential expansion of the Archegos Capital scandal.
The U.S. 10-year Treasury yield soared to 1.77% in the morning, marking a 14-month high. However, the yield later gave back some of its gains and fell to around 1.71%, but major indices could not shake off the pressure from rising yields.
President Joe Biden is scheduled to announce the infrastructure investment plan in Pittsburgh the following day. The market expects the plan to be in the range of $3 trillion to $4 trillion.
The day before, the White House announced a policy to expand COVID-19 vaccinations to 90% of adults by the 19th of next month, which is also seen as potentially accelerating inflation by hastening economic recovery, thereby pushing up Treasury prices.
The rise in Treasury yields also boosted the value of the U.S. dollar. The dollar index rose 0.3% to 93.3, reaching its highest level in four months. Due to the strong dollar, gold fell $28.30 (1.7%) to $1,683.90.
Despite the rise in Treasury yields, tech stocks showed mixed performances. Apple and Microsoft shares each fell more than 1%, while Tesla's stock rebounded by 4%.
Coupang continued its upward trend, rising 6.2% to $48, following the previous day's gains.
Concerns over block trades related to Archegos Capital did not significantly impact the market that day. Shares of banks like Goldman Sachs, which had already engaged in block trades, reversed to gains. In contrast, Credit Suisse and Nomura shares continued to fall significantly following the previous day's plunge.
On the same day, Japan's Mitsubishi UFJ Financial Group warned of a potential loss of about $300 million due to U.S. clients related to Nomura and Credit Suisse. This is widely analyzed as damage related to Archegos.
International oil prices fell ahead of the OPEC+ meeting, which includes the Organization of the Petroleum Exporting Countries (OPEC) and major oil-producing countries such as Russia. West Texas Intermediate (WTI) crude oil closed down $1.01 (1.6%) at $60.55 per barrel.
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